Correlation Between Humanica Public and Bangkok Chain
Can any of the company-specific risk be diversified away by investing in both Humanica Public and Bangkok Chain 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 Humanica Public and Bangkok Chain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humanica Public and Bangkok Chain Hospital, you can compare the effects of market volatilities on Humanica Public and Bangkok Chain 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 Humanica Public with a short position of Bangkok Chain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humanica Public and Bangkok Chain.
Diversification Opportunities for Humanica Public and Bangkok Chain
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Humanica and Bangkok is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Humanica Public and Bangkok Chain Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Chain Hospital and Humanica Public 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 Humanica Public are associated (or correlated) with Bangkok Chain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Chain Hospital has no effect on the direction of Humanica Public i.e., Humanica Public and Bangkok Chain go up and down completely randomly.
Pair Corralation between Humanica Public and Bangkok Chain
Assuming the 90 days trading horizon Humanica Public is expected to generate 1.24 times more return on investment than Bangkok Chain. However, Humanica Public is 1.24 times more volatile than Bangkok Chain Hospital. It trades about -0.05 of its potential returns per unit of risk. Bangkok Chain Hospital is currently generating about -0.06 per unit of risk. If you would invest 1,058 in Humanica Public on September 1, 2024 and sell it today you would lose (153.00) from holding Humanica Public or give up 14.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Humanica Public vs. Bangkok Chain Hospital
Performance |
| Timeline |
| Humanica Public |
| Bangkok Chain Hospital |
Humanica Public and Bangkok Chain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humanica Public and Bangkok Chain
The main advantage of trading using opposite Humanica Public and Bangkok Chain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humanica Public position performs unexpectedly, Bangkok Chain 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 Bangkok Chain will offset losses from the drop in Bangkok Chain's long position.| Humanica Public vs. AP Public | Humanica Public vs. Jasmine International Public | Humanica Public vs. Asia Plus Group | Humanica Public vs. Bangchak Public |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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