Correlation Between Chularat Hospital and Mono Next
Can any of the company-specific risk be diversified away by investing in both Chularat Hospital and Mono Next 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 Mono Next 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 Mono Next Public, you can compare the effects of market volatilities on Chularat Hospital and Mono Next 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 Mono Next. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chularat Hospital and Mono Next.
Diversification Opportunities for Chularat Hospital and Mono Next
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chularat and Mono is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Chularat Hospital Public and Mono Next Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mono Next 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 Mono Next. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mono Next Public has no effect on the direction of Chularat Hospital i.e., Chularat Hospital and Mono Next go up and down completely randomly.
Pair Corralation between Chularat Hospital and Mono Next
Assuming the 90 days trading horizon Chularat Hospital Public is expected to under-perform the Mono Next. But the stock apears to be less risky and, when comparing its historical volatility, Chularat Hospital Public is 2.68 times less risky than Mono Next. The stock trades about -0.14 of its potential returns per unit of risk. The Mono Next Public is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 167.00 in Mono Next Public on August 31, 2024 and sell it today you would earn a total of 85.00 from holding Mono Next Public or generate 50.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Chularat Hospital Public vs. Mono Next Public
Performance |
| Timeline |
| Chularat Hospital Public |
| Mono Next Public |
Chularat Hospital and Mono Next Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chularat Hospital and Mono Next
The main advantage of trading using opposite Chularat Hospital and Mono Next positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chularat Hospital position performs unexpectedly, Mono Next 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 Mono Next will offset losses from the drop in Mono Next'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 |
| Mono Next vs. Bangkok Chain Hospital | Mono Next vs. Grande Asset Hotels | Mono Next vs. Better World Green | Mono Next vs. Chularat 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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