Correlation Between Chularat Hospital and Wave Entertainment
Can any of the company-specific risk be diversified away by investing in both Chularat Hospital and Wave Entertainment 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 Wave Entertainment 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 Wave Entertainment Public, you can compare the effects of market volatilities on Chularat Hospital and Wave Entertainment 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 Wave Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chularat Hospital and Wave Entertainment.
Diversification Opportunities for Chularat Hospital and Wave Entertainment
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chularat and Wave is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Chularat Hospital Public and Wave Entertainment Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wave Entertainment 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 Wave Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wave Entertainment Public has no effect on the direction of Chularat Hospital i.e., Chularat Hospital and Wave Entertainment go up and down completely randomly.
Pair Corralation between Chularat Hospital and Wave Entertainment
Assuming the 90 days trading horizon Chularat Hospital Public is expected to under-perform the Wave Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, Chularat Hospital Public is 38.88 times less risky than Wave Entertainment. The stock trades about -0.01 of its potential returns per unit of risk. The Wave Entertainment Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Wave Entertainment Public on September 4, 2024 and sell it today you would lose (5.00) from holding Wave Entertainment Public or give up 31.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Chularat Hospital Public vs. Wave Entertainment Public
Performance |
| Timeline |
| Chularat Hospital Public |
| Wave Entertainment Public |
Chularat Hospital and Wave Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chularat Hospital and Wave Entertainment
The main advantage of trading using opposite Chularat Hospital and Wave Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chularat Hospital position performs unexpectedly, Wave Entertainment 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 Wave Entertainment will offset losses from the drop in Wave Entertainment's long position.| Chularat Hospital vs. Bangkok Chain Hospital | Chularat Hospital vs. Bangkok Dusit Medical | Chularat Hospital vs. Bumrungrad Hospital Public | Chularat Hospital vs. AP Public |
| Wave Entertainment vs. Vibhavadi Medical Center | Wave Entertainment vs. TWZ Public | Wave Entertainment vs. VGI Public | Wave Entertainment vs. Aqua 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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