Correlation Between Ekachai Medical and Techno Medical
Can any of the company-specific risk be diversified away by investing in both Ekachai Medical and Techno 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 Ekachai Medical and Techno Medical 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 Techno Medical Public, you can compare the effects of market volatilities on Ekachai Medical and Techno 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 Ekachai Medical with a short position of Techno Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekachai Medical and Techno Medical.
Diversification Opportunities for Ekachai Medical and Techno Medical
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ekachai and Techno is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ekachai Medical Care and Techno Medical Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techno Medical Public 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 Techno Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techno Medical Public has no effect on the direction of Ekachai Medical i.e., Ekachai Medical and Techno Medical go up and down completely randomly.
Pair Corralation between Ekachai Medical and Techno Medical
Assuming the 90 days trading horizon Ekachai Medical Care is expected to generate 0.43 times more return on investment than Techno Medical. However, Ekachai Medical Care is 2.32 times less risky than Techno Medical. It trades about -0.19 of its potential returns per unit of risk. Techno Medical Public is currently generating about -0.26 per unit of risk. If you would invest 675.00 in Ekachai Medical Care on September 5, 2024 and sell it today you would lose (25.00) from holding Ekachai Medical Care or give up 3.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ekachai Medical Care vs. Techno Medical Public
Performance |
| Timeline |
| Ekachai Medical Care |
| Techno Medical Public |
Ekachai Medical and Techno Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekachai Medical and Techno Medical
The main advantage of trading using opposite Ekachai Medical and Techno Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekachai Medical position performs unexpectedly, Techno 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 Techno Medical will offset losses from the drop in Techno Medical's long position.| Ekachai Medical vs. Bangkok Dusit Medical | Ekachai Medical vs. CP ALL Public | Ekachai Medical vs. Central Pattana Public | Ekachai Medical vs. Airports of Thailand |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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