Correlation Between Ladprao General and Bangkok Chain
Can any of the company-specific risk be diversified away by investing in both Ladprao General 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 Ladprao General and Bangkok Chain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ladprao General Hospital and Bangkok Chain Hospital, you can compare the effects of market volatilities on Ladprao General 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 Ladprao General with a short position of Bangkok Chain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ladprao General and Bangkok Chain.
Diversification Opportunities for Ladprao General and Bangkok Chain
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ladprao and Bangkok is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ladprao General Hospital 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 Ladprao General 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 Ladprao General Hospital 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 Ladprao General i.e., Ladprao General and Bangkok Chain go up and down completely randomly.
Pair Corralation between Ladprao General and Bangkok Chain
Assuming the 90 days trading horizon Ladprao General Hospital is expected to generate 0.52 times more return on investment than Bangkok Chain. However, Ladprao General Hospital is 1.91 times less risky than Bangkok Chain. It trades about -0.05 of its potential returns per unit of risk. Bangkok Chain Hospital is currently generating about -0.03 per unit of risk. If you would invest 539.00 in Ladprao General Hospital on August 27, 2024 and sell it today you would lose (99.00) from holding Ladprao General Hospital or give up 18.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ladprao General Hospital vs. Bangkok Chain Hospital
Performance |
| Timeline |
| Ladprao General Hospital |
| Bangkok Chain Hospital |
Ladprao General and Bangkok Chain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ladprao General and Bangkok Chain
The main advantage of trading using opposite Ladprao General and Bangkok Chain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ladprao General 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.| Ladprao General vs. Ekachai Medical Care | Ladprao General vs. Bangkok Chain Hospital | Ladprao General vs. Rajthanee Hospital Public | Ladprao General vs. Chularat Hospital Public |
| Bangkok Chain vs. Bangkok Dusit Medical | Bangkok Chain vs. Chularat Hospital Public | Bangkok Chain vs. Bumrungrad Hospital Public | Bangkok Chain vs. Advanced Info Service |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |