Correlation Between Ekachai Medical and True Public
Can any of the company-specific risk be diversified away by investing in both Ekachai Medical and True Public 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 True Public 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 True Public, you can compare the effects of market volatilities on Ekachai Medical and True Public 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 True Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekachai Medical and True Public.
Diversification Opportunities for Ekachai Medical and True Public
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ekachai and True is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ekachai Medical Care and True Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on True 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 True Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of True Public has no effect on the direction of Ekachai Medical i.e., Ekachai Medical and True Public go up and down completely randomly.
Pair Corralation between Ekachai Medical and True Public
Assuming the 90 days trading horizon Ekachai Medical Care is expected to under-perform the True Public. But the stock apears to be less risky and, when comparing its historical volatility, Ekachai Medical Care is 12.49 times less risky than True Public. The stock trades about -0.05 of its potential returns per unit of risk. The True Public is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 687.00 in True Public on August 25, 2024 and sell it today you would earn a total of 463.00 from holding True Public or generate 67.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekachai Medical Care vs. True Public
Performance |
| Timeline |
| Ekachai Medical Care |
| True Public |
Ekachai Medical and True Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekachai Medical and True Public
The main advantage of trading using opposite Ekachai Medical and True Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekachai Medical position performs unexpectedly, True Public 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 True Public will offset losses from the drop in True Public'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 |
| True Public vs. Hana Microelectronics Public | True Public vs. Ekachai Medical Care | True Public vs. Megachem Public | True Public vs. Diamond Building Products |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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