Correlation Between GMM Grammy and Aikchol Hospital
Can any of the company-specific risk be diversified away by investing in both GMM Grammy 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 GMM Grammy and Aikchol Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GMM Grammy Public and Aikchol Hospital Public, you can compare the effects of market volatilities on GMM Grammy 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 GMM Grammy with a short position of Aikchol Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMM Grammy and Aikchol Hospital.
Diversification Opportunities for GMM Grammy and Aikchol Hospital
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GMM and Aikchol is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding GMM Grammy Public 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 GMM Grammy 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 GMM Grammy Public 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 GMM Grammy i.e., GMM Grammy and Aikchol Hospital go up and down completely randomly.
Pair Corralation between GMM Grammy and Aikchol Hospital
Assuming the 90 days trading horizon GMM Grammy is expected to generate 81.53 times less return on investment than Aikchol Hospital. But when comparing it to its historical volatility, GMM Grammy Public is 36.89 times less risky than Aikchol Hospital. It trades about 0.04 of its potential returns per unit of risk. Aikchol Hospital Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,750 in Aikchol Hospital Public on September 1, 2024 and sell it today you would lose (200.00) from holding Aikchol Hospital Public or give up 11.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
GMM Grammy Public vs. Aikchol Hospital Public
Performance |
| Timeline |
| GMM Grammy Public |
| Aikchol Hospital Public |
GMM Grammy and Aikchol Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMM Grammy and Aikchol Hospital
The main advantage of trading using opposite GMM Grammy and Aikchol Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMM Grammy 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.| GMM Grammy vs. Healthlead Public | GMM Grammy vs. Ramkhamhaeng Hospital Public | GMM Grammy vs. AddTech Hub Public | GMM Grammy vs. Praram 9 Hospital |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |