Correlation Between Chularat Hospital and Bangkok Chain
Can any of the company-specific risk be diversified away by investing in both Chularat Hospital and Bangkok Chain 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 Bangkok Chain 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 Bangkok Chain Hospital, you can compare the effects of market volatilities on Chularat Hospital and Bangkok Chain 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 Bangkok Chain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chularat Hospital and Bangkok Chain.
Diversification Opportunities for Chularat Hospital and Bangkok Chain
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chularat and Bangkok is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Chularat Hospital Public and Bangkok Chain Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Chain 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 Bangkok Chain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Chain Hospital has no effect on the direction of Chularat Hospital i.e., Chularat Hospital and Bangkok Chain go up and down completely randomly.
Pair Corralation between Chularat Hospital and Bangkok Chain
Assuming the 90 days trading horizon Chularat Hospital Public is expected to under-perform the Bangkok Chain. But the stock apears to be less risky and, when comparing its historical volatility, Chularat Hospital Public is 38.76 times less risky than Bangkok Chain. The stock trades about -0.02 of its potential returns per unit of risk. The Bangkok Chain Hospital is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,007 in Bangkok Chain Hospital on September 5, 2024 and sell it today you would lose (297.00) from holding Bangkok Chain Hospital or give up 14.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Chularat Hospital Public vs. Bangkok Chain Hospital
Performance |
| Timeline |
| Chularat Hospital Public |
| Bangkok Chain Hospital |
Chularat Hospital and Bangkok Chain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chularat Hospital and Bangkok Chain
The main advantage of trading using opposite Chularat Hospital and Bangkok Chain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chularat Hospital position performs unexpectedly, Bangkok Chain 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 Bangkok Chain will offset losses from the drop in Bangkok Chain's long position.| Chularat Hospital vs. Bangkok Dusit Medical | Chularat Hospital vs. CP ALL Public | Chularat Hospital vs. Central Pattana Public | Chularat Hospital vs. Airports of Thailand |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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