Correlation Between Ekachai Medical and Diamond Building
Can any of the company-specific risk be diversified away by investing in both Ekachai Medical and Diamond Building 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 Diamond Building 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 Diamond Building Products, you can compare the effects of market volatilities on Ekachai Medical and Diamond Building 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 Diamond Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekachai Medical and Diamond Building.
Diversification Opportunities for Ekachai Medical and Diamond Building
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ekachai and Diamond is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ekachai Medical Care and Diamond Building Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diamond Building Products 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 Diamond Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diamond Building Products has no effect on the direction of Ekachai Medical i.e., Ekachai Medical and Diamond Building go up and down completely randomly.
Pair Corralation between Ekachai Medical and Diamond Building
Assuming the 90 days trading horizon Ekachai Medical Care is expected to generate 1.32 times more return on investment than Diamond Building. However, Ekachai Medical is 1.32 times more volatile than Diamond Building Products. It trades about -0.11 of its potential returns per unit of risk. Diamond Building Products is currently generating about -0.17 per unit of risk. 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 |
Ekachai Medical Care vs. Diamond Building Products
Performance |
| Timeline |
| Ekachai Medical Care |
| Diamond Building Products |
Ekachai Medical and Diamond Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekachai Medical and Diamond Building
The main advantage of trading using opposite Ekachai Medical and Diamond Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekachai Medical position performs unexpectedly, Diamond Building 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 Diamond Building will offset losses from the drop in Diamond Building's long position.| Ekachai Medical vs. Chularat Hospital Public | Ekachai Medical vs. Bangkok Chain Hospital | Ekachai Medical vs. Bangkok Dusit Medical | Ekachai Medical vs. Rajthanee Hospital Public |
| Diamond Building vs. 2S Metal Public | Diamond Building vs. AAPICO Hitech Public | Diamond Building vs. Bangsaphan Barmill Public | Diamond Building vs. AJ Plast 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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