Correlation Between Intermedical Care and Erawan
Can any of the company-specific risk be diversified away by investing in both Intermedical Care and Erawan 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 Intermedical Care and Erawan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intermedical Care and and The Erawan Group, you can compare the effects of market volatilities on Intermedical Care and Erawan 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 Intermedical Care with a short position of Erawan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermedical Care and Erawan.
Diversification Opportunities for Intermedical Care and Erawan
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Intermedical and Erawan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Intermedical Care and and The Erawan Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erawan Group and Intermedical Care 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 Intermedical Care and are associated (or correlated) with Erawan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erawan Group has no effect on the direction of Intermedical Care i.e., Intermedical Care and Erawan go up and down completely randomly.
Pair Corralation between Intermedical Care and Erawan
Assuming the 90 days trading horizon Intermedical Care and is expected to under-perform the Erawan. But the stock apears to be less risky and, when comparing its historical volatility, Intermedical Care and is 1.61 times less risky than Erawan. The stock trades about -0.25 of its potential returns per unit of risk. The The Erawan Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 400.00 in The Erawan Group on September 1, 2024 and sell it today you would earn a total of 0.00 from holding The Erawan Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermedical Care and vs. The Erawan Group
Performance |
| Timeline |
| Intermedical Care |
| Erawan Group |
Intermedical Care and Erawan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermedical Care and Erawan
The main advantage of trading using opposite Intermedical Care and Erawan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermedical Care position performs unexpectedly, Erawan 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 Erawan will offset losses from the drop in Erawan's long position.| Intermedical Care vs. Bangkok Dusit Medical | Intermedical Care vs. Bumrungrad Hospital Public | Intermedical Care vs. Bangkok Chain Hospital | Intermedical Care vs. Rajthanee Hospital Public |
| Erawan vs. Central Plaza Hotel | Erawan vs. Minor International Public | Erawan vs. Central Pattana Public | Erawan vs. CP ALL 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |