Correlation Between Intermedical Care and Inter Pharma
Can any of the company-specific risk be diversified away by investing in both Intermedical Care and Inter Pharma 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 Inter Pharma 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 Inter Pharma Public, you can compare the effects of market volatilities on Intermedical Care and Inter Pharma 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 Inter Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermedical Care and Inter Pharma.
Diversification Opportunities for Intermedical Care and Inter Pharma
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intermedical and Inter is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Intermedical Care and and Inter Pharma Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Pharma Public 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 Inter Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Pharma Public has no effect on the direction of Intermedical Care i.e., Intermedical Care and Inter Pharma go up and down completely randomly.
Pair Corralation between Intermedical Care and Inter Pharma
Assuming the 90 days trading horizon Intermedical Care and is expected to under-perform the Inter Pharma. But the stock apears to be less risky and, when comparing its historical volatility, Intermedical Care and is 7.42 times less risky than Inter Pharma. The stock trades about -0.35 of its potential returns per unit of risk. The Inter Pharma Public is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 244.00 in Inter Pharma Public on January 3, 2025 and sell it today you would earn a total of 126.00 from holding Inter Pharma Public or generate 51.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermedical Care and vs. Inter Pharma Public
Performance |
| Timeline |
| Intermedical Care |
| Inter Pharma Public |
Intermedical Care and Inter Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermedical Care and Inter Pharma
The main advantage of trading using opposite Intermedical Care and Inter Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermedical Care position performs unexpectedly, Inter Pharma 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 Inter Pharma will offset losses from the drop in Inter Pharma's long position.| Intermedical Care vs. Inter Pharma Public | Intermedical Care vs. Ekachai Medical Care | Intermedical Care vs. Humanica Public | Intermedical Care vs. Bangkok Chain Hospital |
| Inter Pharma vs. Intermedical Care and | Inter Pharma vs. DOD Biotech Public | Inter Pharma vs. Siam Global House | Inter Pharma vs. Dohome 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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