Correlation Between KT Medical and Bangkok Dusit
Can any of the company-specific risk be diversified away by investing in both KT Medical and Bangkok Dusit 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 KT Medical and Bangkok Dusit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KT Medical Service and Bangkok Dusit Medical, you can compare the effects of market volatilities on KT Medical and Bangkok Dusit 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 KT Medical with a short position of Bangkok Dusit. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Medical and Bangkok Dusit.
Diversification Opportunities for KT Medical and Bangkok Dusit
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KTMS and Bangkok is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding KT Medical Service and Bangkok Dusit Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Dusit Medical and KT 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 KT Medical Service are associated (or correlated) with Bangkok Dusit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Dusit Medical has no effect on the direction of KT Medical i.e., KT Medical and Bangkok Dusit go up and down completely randomly.
Pair Corralation between KT Medical and Bangkok Dusit
Assuming the 90 days trading horizon KT Medical Service is expected to generate 1.95 times more return on investment than Bangkok Dusit. However, KT Medical is 1.95 times more volatile than Bangkok Dusit Medical. It trades about 0.02 of its potential returns per unit of risk. Bangkok Dusit Medical is currently generating about 0.01 per unit of risk. If you would invest 227.00 in KT Medical Service on September 3, 2024 and sell it today you would earn a total of 3.00 from holding KT Medical Service or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KT Medical Service vs. Bangkok Dusit Medical
Performance |
| Timeline |
| KT Medical Service |
| Bangkok Dusit Medical |
KT Medical and Bangkok Dusit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT Medical and Bangkok Dusit
The main advantage of trading using opposite KT Medical and Bangkok Dusit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT Medical position performs unexpectedly, Bangkok Dusit 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 Dusit will offset losses from the drop in Bangkok Dusit's long position.| KT Medical vs. DTC Enterprise PCL | KT Medical vs. Yong Concrete PCL | KT Medical vs. Make To Win | KT Medical vs. Aurora Design PCL |
| Bangkok Dusit vs. Bumrungrad Hospital Public | Bangkok Dusit vs. Bangkok Chain Hospital | Bangkok Dusit vs. Ramkhamhaeng Hospital Public | Bangkok Dusit vs. Vibhavadi Medical Center |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |