Correlation Between Diamond Building and Ekachai Medical
Can any of the company-specific risk be diversified away by investing in both Diamond Building and Ekachai Medical 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 Diamond Building and Ekachai Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diamond Building Products and Ekachai Medical Care, you can compare the effects of market volatilities on Diamond Building and Ekachai Medical 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 Diamond Building with a short position of Ekachai Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamond Building and Ekachai Medical.
Diversification Opportunities for Diamond Building and Ekachai Medical
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Diamond and Ekachai is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Diamond Building Products and Ekachai Medical Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekachai Medical Care and Diamond Building 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 Diamond Building Products are associated (or correlated) with Ekachai Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekachai Medical Care has no effect on the direction of Diamond Building i.e., Diamond Building and Ekachai Medical go up and down completely randomly.
Pair Corralation between Diamond Building and Ekachai Medical
Assuming the 90 days trading horizon Diamond Building Products is expected to under-perform the Ekachai Medical. But the stock apears to be less risky and, when comparing its historical volatility, Diamond Building Products is 1.32 times less risky than Ekachai Medical. The stock trades about -0.17 of its potential returns per unit of risk. The Ekachai Medical Care is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 665.00 in Ekachai Medical Care on August 29, 2024 and sell it today you would lose (15.00) from holding Ekachai Medical Care or give up 2.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diamond Building Products vs. Ekachai Medical Care
Performance |
| Timeline |
| Diamond Building Products |
| Ekachai Medical Care |
Diamond Building and Ekachai Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamond Building and Ekachai Medical
The main advantage of trading using opposite Diamond Building and Ekachai Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamond Building position performs unexpectedly, Ekachai Medical 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 Ekachai Medical will offset losses from the drop in Ekachai Medical's long position.| Diamond Building vs. 2S Metal Public | Diamond Building vs. AAPICO Hitech Public | Diamond Building vs. Bangsaphan Barmill Public | Diamond Building vs. AJ Plast Public |
| Ekachai Medical vs. Chularat Hospital Public | Ekachai Medical vs. Bangkok Chain Hospital | Ekachai Medical vs. Bangkok Dusit Medical | Ekachai Medical 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |