Correlation Between Bumrungrad Hospital and Carsales
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Carsales at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bumrungrad Hospital and Carsales into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bumrungrad Hospital Public and CarsalesCom, you can compare the effects of market volatilities on Bumrungrad Hospital and Carsales and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bumrungrad Hospital with a short position of Carsales. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Carsales.
Diversification Opportunities for Bumrungrad Hospital and Carsales
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bumrungrad and Carsales is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and CarsalesCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CarsalesCom and Bumrungrad Hospital is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bumrungrad Hospital Public are associated (or correlated) with Carsales. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CarsalesCom has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Carsales go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Carsales
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to under-perform the Carsales. In addition to that, Bumrungrad Hospital is 2.14 times more volatile than CarsalesCom. It trades about -0.23 of its total potential returns per unit of risk. CarsalesCom is currently generating about 0.23 per unit of volatility. If you would invest 2,260 in CarsalesCom on September 5, 2024 and sell it today you would earn a total of 300.00 from holding CarsalesCom or generate 13.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. CarsalesCom
Performance |
| Timeline |
| Bumrungrad Hospital |
| CarsalesCom |
Bumrungrad Hospital and Carsales Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Carsales
The main advantage of trading using opposite Bumrungrad Hospital and Carsales positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Carsales can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Carsales will offset losses from the drop in Carsales' long position.| Bumrungrad Hospital vs. Superior Plus Corp | Bumrungrad Hospital vs. NMI Holdings | Bumrungrad Hospital vs. Origin Agritech | Bumrungrad Hospital vs. SIVERS SEMICONDUCTORS AB |
| Carsales vs. Fast Retailing Co | Carsales vs. Vastned Retail NV | Carsales vs. DiamondRock Hospitality | Carsales vs. Bumrungrad Hospital Public |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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