Correlation Between Thonburi Medical and Bangkok Chain
Can any of the company-specific risk be diversified away by investing in both Thonburi Medical 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 Thonburi Medical and Bangkok Chain 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 Bangkok Chain Hospital, you can compare the effects of market volatilities on Thonburi Medical 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 Thonburi Medical with a short position of Bangkok Chain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thonburi Medical and Bangkok Chain.
Diversification Opportunities for Thonburi Medical and Bangkok Chain
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Thonburi and Bangkok is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Thonburi Medical Centre 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 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 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 Thonburi Medical i.e., Thonburi Medical and Bangkok Chain go up and down completely randomly.
Pair Corralation between Thonburi Medical and Bangkok Chain
Assuming the 90 days trading horizon Thonburi Medical Centre is expected to generate 29.15 times more return on investment than Bangkok Chain. However, Thonburi Medical is 29.15 times more volatile than Bangkok Chain Hospital. It trades about 0.04 of its potential returns per unit of risk. Bangkok Chain Hospital is currently generating about -0.01 per unit of risk. If you would invest 9,221 in Thonburi Medical Centre on August 31, 2024 and sell it today you would earn a total of 329.00 from holding Thonburi Medical Centre or generate 3.57% 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. Bangkok Chain Hospital
Performance |
| Timeline |
| Thonburi Medical Centre |
| Bangkok Chain Hospital |
Thonburi Medical and Bangkok Chain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thonburi Medical and Bangkok Chain
The main advantage of trading using opposite Thonburi Medical and Bangkok Chain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thonburi Medical 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.| Thonburi Medical vs. Aikchol Hospital Public | Thonburi Medical vs. Nonthavej Hospital Public | Thonburi Medical vs. Wattana Karnpaet Public | Thonburi Medical vs. Mahachai Hospital Public |
| Bangkok Chain vs. AP Public | Bangkok Chain vs. Bumrungrad Hospital Public | Bangkok Chain vs. Advanced Information Technology | Bangkok Chain 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |