Correlation Between Chularat Hospital and Banpu Public
Can any of the company-specific risk be diversified away by investing in both Chularat Hospital and Banpu Public 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 Banpu Public 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 Banpu Public, you can compare the effects of market volatilities on Chularat Hospital and Banpu Public 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 Banpu Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chularat Hospital and Banpu Public.
Diversification Opportunities for Chularat Hospital and Banpu Public
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chularat and Banpu is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Chularat Hospital Public and Banpu Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banpu Public 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 Banpu Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banpu Public has no effect on the direction of Chularat Hospital i.e., Chularat Hospital and Banpu Public go up and down completely randomly.
Pair Corralation between Chularat Hospital and Banpu Public
Assuming the 90 days trading horizon Chularat Hospital Public is expected to generate 0.81 times more return on investment than Banpu Public. However, Chularat Hospital Public is 1.23 times less risky than Banpu Public. It trades about -0.05 of its potential returns per unit of risk. Banpu Public is currently generating about -0.06 per unit of risk. If you would invest 353.00 in Chularat Hospital Public on November 27, 2024 and sell it today you would lose (129.00) from holding Chularat Hospital Public or give up 36.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chularat Hospital Public vs. Banpu Public
Performance |
| Timeline |
| Chularat Hospital Public |
| Banpu Public |
Chularat Hospital and Banpu Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chularat Hospital and Banpu Public
The main advantage of trading using opposite Chularat Hospital and Banpu Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chularat Hospital position performs unexpectedly, Banpu Public 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 Banpu Public will offset losses from the drop in Banpu Public's long position.| Chularat Hospital vs. Bangkok Chain Hospital | Chularat Hospital vs. Bangkok Dusit Medical | Chularat Hospital vs. Bumrungrad Hospital PCL | Chularat Hospital vs. AP Public |
| Banpu Public vs. PTT Public | Banpu Public vs. PTT Exploration and | Banpu Public vs. Bangkok Bank Public | Banpu Public vs. Thai Oil 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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