Correlation Between Central Pattana and Chularat Hospital
Can any of the company-specific risk be diversified away by investing in both Central Pattana and Chularat Hospital 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 Central Pattana and Chularat Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Central Pattana Public and Chularat Hospital Public, you can compare the effects of market volatilities on Central Pattana and Chularat Hospital 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 Central Pattana with a short position of Chularat Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Pattana and Chularat Hospital.
Diversification Opportunities for Central Pattana and Chularat Hospital
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Central and Chularat is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Central Pattana Public and Chularat Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chularat Hospital Public and Central Pattana 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 Central Pattana Public are associated (or correlated) with Chularat Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chularat Hospital Public has no effect on the direction of Central Pattana i.e., Central Pattana and Chularat Hospital go up and down completely randomly.
Pair Corralation between Central Pattana and Chularat Hospital
Assuming the 90 days trading horizon Central Pattana Public is expected to generate 0.47 times more return on investment than Chularat Hospital. However, Central Pattana Public is 2.15 times less risky than Chularat Hospital. It trades about -0.06 of its potential returns per unit of risk. Chularat Hospital Public is currently generating about -0.14 per unit of risk. If you would invest 6,025 in Central Pattana Public on September 13, 2024 and sell it today you would lose (75.00) from holding Central Pattana Public or give up 1.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Central Pattana Public vs. Chularat Hospital Public
Performance |
| Timeline |
| Central Pattana Public |
| Chularat Hospital Public |
Central Pattana and Chularat Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Pattana and Chularat Hospital
The main advantage of trading using opposite Central Pattana and Chularat Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Pattana position performs unexpectedly, Chularat Hospital 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 Chularat Hospital will offset losses from the drop in Chularat Hospital's long position.| Central Pattana vs. CP ALL Public | Central Pattana vs. Bangkok Dusit Medical | Central Pattana vs. Airports of Thailand | Central Pattana vs. Advanced Info Service |
| Chularat Hospital vs. Bangkok Chain Hospital | Chularat Hospital vs. Bangkok Dusit Medical | Chularat Hospital vs. Bumrungrad Hospital Public | Chularat Hospital vs. AP 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |