Correlation Between CK Power and Intermedical Care
Can any of the company-specific risk be diversified away by investing in both CK Power and Intermedical Care 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 CK Power and Intermedical Care into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CK Power Public and Intermedical Care and, you can compare the effects of market volatilities on CK Power and Intermedical Care 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 CK Power with a short position of Intermedical Care. Check out your portfolio center. Please also check ongoing floating volatility patterns of CK Power and Intermedical Care.
Diversification Opportunities for CK Power and Intermedical Care
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CKP and Intermedical is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding CK Power Public and Intermedical Care and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermedical Care and CK Power 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 CK Power Public are associated (or correlated) with Intermedical Care. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermedical Care has no effect on the direction of CK Power i.e., CK Power and Intermedical Care go up and down completely randomly.
Pair Corralation between CK Power and Intermedical Care
Assuming the 90 days trading horizon CK Power Public is expected to under-perform the Intermedical Care. But the stock apears to be less risky and, when comparing its historical volatility, CK Power Public is 50.85 times less risky than Intermedical Care. The stock trades about -0.08 of its potential returns per unit of risk. The Intermedical Care and is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 610.00 in Intermedical Care and on September 1, 2024 and sell it today you would lose (118.00) from holding Intermedical Care and or give up 19.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CK Power Public vs. Intermedical Care and
Performance |
| Timeline |
| CK Power Public |
| Intermedical Care |
CK Power and Intermedical Care Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CK Power and Intermedical Care
The main advantage of trading using opposite CK Power and Intermedical Care positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CK Power position performs unexpectedly, Intermedical Care 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 Intermedical Care will offset losses from the drop in Intermedical Care's long position.| CK Power vs. Energy Absolute Public | CK Power vs. BCPG Public | CK Power vs. Bangkok Expressway and | CK Power vs. Gulf Energy Development |
| Intermedical Care vs. Bangkok Dusit Medical | Intermedical Care vs. Bumrungrad Hospital Public | Intermedical Care vs. Bangkok Chain Hospital | Intermedical Care vs. Rajthanee 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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