Correlation Between Thonburi Medical and AP Public
Can any of the company-specific risk be diversified away by investing in both Thonburi Medical and AP Public 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 Thonburi Medical and AP Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thonburi Medical Centre and AP Public, you can compare the effects of market volatilities on Thonburi Medical and AP Public 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 Thonburi Medical with a short position of AP Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thonburi Medical and AP Public.
Diversification Opportunities for Thonburi Medical and AP Public
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thonburi and AP Public is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Thonburi Medical Centre and AP Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Public and Thonburi Medical 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 Thonburi Medical Centre are associated (or correlated) with AP Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Public has no effect on the direction of Thonburi Medical i.e., Thonburi Medical and AP Public go up and down completely randomly.
Pair Corralation between Thonburi Medical and AP Public
Assuming the 90 days trading horizon Thonburi Medical Centre is expected to generate 28.39 times more return on investment than AP Public. However, Thonburi Medical is 28.39 times more volatile than AP Public. It trades about 0.04 of its potential returns per unit of risk. AP Public is currently generating about -0.01 per unit of risk. If you would invest 9,221 in Thonburi Medical Centre on September 3, 2024 and sell it today you would earn a total of 354.00 from holding Thonburi Medical Centre or generate 3.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thonburi Medical Centre vs. AP Public
Performance |
| Timeline |
| Thonburi Medical Centre |
| AP Public |
Thonburi Medical and AP Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thonburi Medical and AP Public
The main advantage of trading using opposite Thonburi Medical and AP Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thonburi Medical position performs unexpectedly, AP Public 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 AP Public will offset losses from the drop in AP Public's long position.| Thonburi Medical vs. Aikchol Hospital Public | Thonburi Medical vs. Nonthavej Hospital Public | Thonburi Medical vs. Wattana Karnpaet Public | Thonburi Medical vs. Mahachai Hospital 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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