Correlation Between Ekachai Medical and Bangkok Dusit
Can any of the company-specific risk be diversified away by investing in both Ekachai Medical and Bangkok Dusit 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 Ekachai Medical and Bangkok Dusit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekachai Medical Care and Bangkok Dusit Medical, you can compare the effects of market volatilities on Ekachai Medical and Bangkok Dusit 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 Ekachai Medical with a short position of Bangkok Dusit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekachai Medical and Bangkok Dusit.
Diversification Opportunities for Ekachai Medical and Bangkok Dusit
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ekachai and Bangkok is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ekachai Medical Care and Bangkok Dusit Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Dusit Medical and Ekachai Medical 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 Ekachai Medical Care are associated (or correlated) with Bangkok Dusit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Dusit Medical has no effect on the direction of Ekachai Medical i.e., Ekachai Medical and Bangkok Dusit go up and down completely randomly.
Pair Corralation between Ekachai Medical and Bangkok Dusit
Assuming the 90 days trading horizon Ekachai Medical Care is expected to under-perform the Bangkok Dusit. In addition to that, Ekachai Medical is 1.04 times more volatile than Bangkok Dusit Medical. It trades about -0.01 of its total potential returns per unit of risk. Bangkok Dusit Medical is currently generating about 0.0 per unit of volatility. If you would invest 2,718 in Bangkok Dusit Medical on August 24, 2024 and sell it today you would lose (68.00) from holding Bangkok Dusit Medical or give up 2.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Ekachai Medical Care vs. Bangkok Dusit Medical
Performance |
| Timeline |
| Ekachai Medical Care |
| Bangkok Dusit Medical |
Ekachai Medical and Bangkok Dusit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekachai Medical and Bangkok Dusit
The main advantage of trading using opposite Ekachai Medical and Bangkok Dusit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekachai Medical position performs unexpectedly, Bangkok Dusit 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 Bangkok Dusit will offset losses from the drop in Bangkok Dusit's long position.| Ekachai Medical vs. Chularat Hospital Public | Ekachai Medical vs. Bangkok Chain Hospital | Ekachai Medical vs. Srivichaivejvivat Public |
| Bangkok Dusit vs. Chularat Hospital Public | Bangkok Dusit vs. Ekachai Medical Care | Bangkok Dusit vs. Bangkok Chain Hospital | Bangkok Dusit vs. Srivichaivejvivat 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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