Correlation Between Chularat Hospital and Ladprao General
Can any of the company-specific risk be diversified away by investing in both Chularat Hospital and Ladprao General 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 Ladprao General 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 Ladprao General Hospital, you can compare the effects of market volatilities on Chularat Hospital and Ladprao General 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 Ladprao General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chularat Hospital and Ladprao General.
Diversification Opportunities for Chularat Hospital and Ladprao General
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chularat and Ladprao is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Chularat Hospital Public and Ladprao General Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladprao General 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 Ladprao General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladprao General Hospital has no effect on the direction of Chularat Hospital i.e., Chularat Hospital and Ladprao General go up and down completely randomly.
Pair Corralation between Chularat Hospital and Ladprao General
Assuming the 90 days trading horizon Chularat Hospital Public is expected to under-perform the Ladprao General. In addition to that, Chularat Hospital is 2.68 times more volatile than Ladprao General Hospital. It trades about -0.14 of its total potential returns per unit of risk. Ladprao General Hospital is currently generating about -0.14 per unit of volatility. If you would invest 445.00 in Ladprao General Hospital on August 31, 2024 and sell it today you would lose (11.00) from holding Ladprao General Hospital or give up 2.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chularat Hospital Public vs. Ladprao General Hospital
Performance |
| Timeline |
| Chularat Hospital Public |
| Ladprao General Hospital |
Chularat Hospital and Ladprao General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chularat Hospital and Ladprao General
The main advantage of trading using opposite Chularat Hospital and Ladprao General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chularat Hospital position performs unexpectedly, Ladprao General 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 Ladprao General will offset losses from the drop in Ladprao General's long position.| Chularat Hospital vs. AP Public | Chularat Hospital vs. Bumrungrad Hospital Public | Chularat Hospital vs. Advanced Information Technology | Chularat Hospital vs. AJ Plast Public |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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