Correlation Between Dow Jones and Chularat Hospital
Can any of the company-specific risk be diversified away by investing in both Dow Jones 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 Dow Jones and Chularat Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Chularat Hospital Public, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of Chularat Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Chularat Hospital.
Diversification Opportunities for Dow Jones and Chularat Hospital
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dow and Chularat is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial 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 Dow Jones 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 Dow Jones Industrial 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 Dow Jones i.e., Dow Jones and Chularat Hospital go up and down completely randomly.
Pair Corralation between Dow Jones and Chularat Hospital
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.42 times more return on investment than Chularat Hospital. However, Dow Jones Industrial is 2.36 times less risky than Chularat Hospital. It trades about 0.26 of its potential returns per unit of risk. Chularat Hospital Public is currently generating about -0.19 per unit of risk. If you would invest 4,238,757 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 234,900 from holding Dow Jones Industrial or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Chularat Hospital Public
Performance |
| Timeline |
Dow Jones and Chularat Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Chularat Hospital Public
Pair trading matchups for Chularat Hospital
Pair Trading with Dow Jones and Chularat Hospital
The main advantage of trading using opposite Dow Jones and Chularat Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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.| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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