Correlation Between FEMALE HEALTH and Bumrungrad Hospital
Can any of the company-specific risk be diversified away by investing in both FEMALE HEALTH and Bumrungrad 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 FEMALE HEALTH and Bumrungrad Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FEMALE HEALTH and Bumrungrad Hospital Public, you can compare the effects of market volatilities on FEMALE HEALTH and Bumrungrad 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 FEMALE HEALTH with a short position of Bumrungrad Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEMALE HEALTH and Bumrungrad Hospital.
Diversification Opportunities for FEMALE HEALTH and Bumrungrad Hospital
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FEMALE and Bumrungrad is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding FEMALE HEALTH and Bumrungrad Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bumrungrad Hospital and FEMALE HEALTH 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 FEMALE HEALTH are associated (or correlated) with Bumrungrad Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bumrungrad Hospital has no effect on the direction of FEMALE HEALTH i.e., FEMALE HEALTH and Bumrungrad Hospital go up and down completely randomly.
Pair Corralation between FEMALE HEALTH and Bumrungrad Hospital
Assuming the 90 days trading horizon FEMALE HEALTH is expected to under-perform the Bumrungrad Hospital. In addition to that, FEMALE HEALTH is 1.65 times more volatile than Bumrungrad Hospital Public. It trades about -0.04 of its total potential returns per unit of risk. Bumrungrad Hospital Public is currently generating about -0.06 per unit of volatility. If you would invest 625.00 in Bumrungrad Hospital Public on August 28, 2024 and sell it today you would lose (65.00) from holding Bumrungrad Hospital Public or give up 10.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FEMALE HEALTH vs. Bumrungrad Hospital Public
Performance |
| Timeline |
| FEMALE HEALTH |
| Bumrungrad Hospital |
FEMALE HEALTH and Bumrungrad Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEMALE HEALTH and Bumrungrad Hospital
The main advantage of trading using opposite FEMALE HEALTH and Bumrungrad Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEMALE HEALTH position performs unexpectedly, Bumrungrad 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 Bumrungrad Hospital will offset losses from the drop in Bumrungrad Hospital's long position.| FEMALE HEALTH vs. GREENX METALS LTD | FEMALE HEALTH vs. Cogent Communications Holdings | FEMALE HEALTH vs. Chunghwa Telecom Co | FEMALE HEALTH vs. Mobilezone Holding AG |
| Bumrungrad Hospital vs. Ramsay Health Care | Bumrungrad Hospital vs. Superior Plus Corp | Bumrungrad Hospital vs. NMI Holdings | Bumrungrad Hospital vs. Origin Agritech |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |