Correlation Between Ekachai Medical and SAF Special
Can any of the company-specific risk be diversified away by investing in both Ekachai Medical and SAF Special 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 SAF Special 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 SAF Special Steel, you can compare the effects of market volatilities on Ekachai Medical and SAF Special 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 SAF Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekachai Medical and SAF Special.
Diversification Opportunities for Ekachai Medical and SAF Special
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ekachai and SAF is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ekachai Medical Care and SAF Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAF Special Steel 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 SAF Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAF Special Steel has no effect on the direction of Ekachai Medical i.e., Ekachai Medical and SAF Special go up and down completely randomly.
Pair Corralation between Ekachai Medical and SAF Special
Assuming the 90 days trading horizon Ekachai Medical Care is expected to generate 0.31 times more return on investment than SAF Special. However, Ekachai Medical Care is 3.24 times less risky than SAF Special. It trades about -0.01 of its potential returns per unit of risk. SAF Special Steel is currently generating about -0.07 per unit of risk. If you would invest 670.00 in Ekachai Medical Care on August 29, 2024 and sell it today you would lose (20.00) from holding Ekachai Medical Care or give up 2.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.5% |
| Values | Daily Returns |
Ekachai Medical Care vs. SAF Special Steel
Performance |
| Timeline |
| Ekachai Medical Care |
| SAF Special Steel |
Ekachai Medical and SAF Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekachai Medical and SAF Special
The main advantage of trading using opposite Ekachai Medical and SAF Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekachai Medical position performs unexpectedly, SAF Special 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 SAF Special will offset losses from the drop in SAF Special'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 |
| SAF Special vs. MCS Steel Public | SAF Special vs. Hwa Fong Rubber | SAF Special vs. Haad Thip Public | SAF Special vs. SCG PACKAGING PCL NVDR |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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