Correlation Between Empire State and Mahachai Hospital
Can any of the company-specific risk be diversified away by investing in both Empire State and Mahachai Hospital 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 Empire State and Mahachai Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Empire State Realty and Mahachai Hospital Public, you can compare the effects of market volatilities on Empire State and Mahachai Hospital 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 Empire State with a short position of Mahachai Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empire State and Mahachai Hospital.
Diversification Opportunities for Empire State and Mahachai Hospital
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Empire and Mahachai is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Empire State Realty and Mahachai Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahachai Hospital Public and Empire State 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 Empire State Realty are associated (or correlated) with Mahachai Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahachai Hospital Public has no effect on the direction of Empire State i.e., Empire State and Mahachai Hospital go up and down completely randomly.
Pair Corralation between Empire State and Mahachai Hospital
Given the investment horizon of 90 days Empire State Realty is expected to generate 0.76 times more return on investment than Mahachai Hospital. However, Empire State Realty is 1.32 times less risky than Mahachai Hospital. It trades about 0.13 of its potential returns per unit of risk. Mahachai Hospital Public is currently generating about -0.28 per unit of risk. If you would invest 1,060 in Empire State Realty on September 1, 2024 and sell it today you would earn a total of 36.00 from holding Empire State Realty or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Empire State Realty vs. Mahachai Hospital Public
Performance |
| Timeline |
| Empire State Realty |
| Mahachai Hospital Public |
Empire State and Mahachai Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empire State and Mahachai Hospital
The main advantage of trading using opposite Empire State and Mahachai Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empire State position performs unexpectedly, Mahachai Hospital 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 Mahachai Hospital will offset losses from the drop in Mahachai Hospital's long position.| Empire State vs. Paramount Group | Empire State vs. Hudson Pacific Properties | Empire State vs. Equity Commonwealth | Empire State vs. Douglas Emmett |
| Mahachai Hospital vs. AP Public | Mahachai Hospital vs. Advanced Information Technology | Mahachai Hospital vs. AJ Plast Public | Mahachai Hospital vs. Berli Jucker 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |