Correlation Between Bumrungrad Hospital and Axcelis Technologies
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and Axcelis Technologies 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 Axcelis Technologies 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 Axcelis Technologies, you can compare the effects of market volatilities on Bumrungrad Hospital and Axcelis Technologies 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 Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Axcelis Technologies.
Diversification Opportunities for Bumrungrad Hospital and Axcelis Technologies
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bumrungrad and Axcelis is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies 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 Axcelis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axcelis Technologies has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and Axcelis Technologies go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Axcelis Technologies
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to under-perform the Axcelis Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Bumrungrad Hospital Public is 1.08 times less risky than Axcelis Technologies. The stock trades about -0.15 of its potential returns per unit of risk. The Axcelis Technologies is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 8,988 in Axcelis Technologies on September 12, 2024 and sell it today you would lose (1,798) from holding Axcelis Technologies or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. Axcelis Technologies
Performance |
| Timeline |
| Bumrungrad Hospital |
| Axcelis Technologies |
Bumrungrad Hospital and Axcelis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Axcelis Technologies
The main advantage of trading using opposite Bumrungrad Hospital and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, Axcelis Technologies 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 Axcelis Technologies will offset losses from the drop in Axcelis Technologies' long position.| Bumrungrad Hospital vs. Ramsay Health Care | Bumrungrad Hospital vs. Universal Health Services | Bumrungrad Hospital vs. Superior Plus Corp | Bumrungrad Hospital vs. SIVERS SEMICONDUCTORS AB |
| Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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