Correlation Between Global Green and Aikchol Hospital
Can any of the company-specific risk be diversified away by investing in both Global Green and Aikchol 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 Global Green and Aikchol Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Green Chemicals and Aikchol Hospital Public, you can compare the effects of market volatilities on Global Green and Aikchol 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 Global Green with a short position of Aikchol Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Green and Aikchol Hospital.
Diversification Opportunities for Global Green and Aikchol Hospital
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Global and Aikchol is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Global Green Chemicals and Aikchol Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aikchol Hospital Public and Global Green 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 Global Green Chemicals are associated (or correlated) with Aikchol Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aikchol Hospital Public has no effect on the direction of Global Green i.e., Global Green and Aikchol Hospital go up and down completely randomly.
Pair Corralation between Global Green and Aikchol Hospital
Assuming the 90 days trading horizon Global Green Chemicals is expected to generate 2.57 times more return on investment than Aikchol Hospital. However, Global Green is 2.57 times more volatile than Aikchol Hospital Public. It trades about -0.04 of its potential returns per unit of risk. Aikchol Hospital Public is currently generating about -0.17 per unit of risk. If you would invest 464.00 in Global Green Chemicals on September 3, 2024 and sell it today you would lose (8.00) from holding Global Green Chemicals or give up 1.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Green Chemicals vs. Aikchol Hospital Public
Performance |
| Timeline |
| Global Green Chemicals |
| Aikchol Hospital Public |
Global Green and Aikchol Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Green and Aikchol Hospital
The main advantage of trading using opposite Global Green and Aikchol Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Green position performs unexpectedly, Aikchol 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 Aikchol Hospital will offset losses from the drop in Aikchol Hospital's long position.| Global Green vs. Ichitan Group Public | Global Green vs. Indorama Ventures PCL | Global Green vs. BCPG Public | Global Green vs. IRPC Public |
| Aikchol Hospital vs. AP Public | Aikchol Hospital vs. Bumrungrad Hospital Public | Aikchol Hospital vs. Advanced Information Technology | Aikchol Hospital vs. AJ Plast 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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