Correlation Between Chularat Hospital and Praram 9
Can any of the company-specific risk be diversified away by investing in both Chularat Hospital and Praram 9 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 Chularat Hospital and Praram 9 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chularat Hospital Public and Praram 9 Hospital, you can compare the effects of market volatilities on Chularat Hospital and Praram 9 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 Chularat Hospital with a short position of Praram 9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chularat Hospital and Praram 9.
Diversification Opportunities for Chularat Hospital and Praram 9
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chularat and Praram is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Chularat Hospital Public and Praram 9 Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praram 9 Hospital and Chularat 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 Chularat Hospital Public are associated (or correlated) with Praram 9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praram 9 Hospital has no effect on the direction of Chularat Hospital i.e., Chularat Hospital and Praram 9 go up and down completely randomly.
Pair Corralation between Chularat Hospital and Praram 9
Assuming the 90 days trading horizon Chularat Hospital Public is expected to under-perform the Praram 9. But the stock apears to be less risky and, when comparing its historical volatility, Chularat Hospital Public is 1.27 times less risky than Praram 9. The stock trades about -0.23 of its potential returns per unit of risk. The Praram 9 Hospital is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,386 in Praram 9 Hospital on September 4, 2024 and sell it today you would earn a total of 189.00 from holding Praram 9 Hospital or generate 7.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Chularat Hospital Public vs. Praram 9 Hospital
Performance |
| Timeline |
| Chularat Hospital Public |
| Praram 9 Hospital |
Chularat Hospital and Praram 9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chularat Hospital and Praram 9
The main advantage of trading using opposite Chularat Hospital and Praram 9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chularat Hospital position performs unexpectedly, Praram 9 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 Praram 9 will offset losses from the drop in Praram 9's long position.| Chularat Hospital vs. Bangkok Dusit Medical | Chularat Hospital vs. Bangkok Dusit Medical | Chularat Hospital vs. Bangkok Chain Hospital | Chularat Hospital vs. Chularat Hospital Public |
| Praram 9 vs. Bangkok Dusit Medical | Praram 9 vs. Bumrungrad Hospital Public | Praram 9 vs. Bangkok Chain Hospital | Praram 9 vs. Rajthanee 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |