Correlation Between Ladprao General and Nonthavej Hospital
Can any of the company-specific risk be diversified away by investing in both Ladprao General and Nonthavej Hospital 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 Nonthavej Hospital 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 Nonthavej Hospital Public, you can compare the effects of market volatilities on Ladprao General and Nonthavej Hospital 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 Nonthavej Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ladprao General and Nonthavej Hospital.
Diversification Opportunities for Ladprao General and Nonthavej Hospital
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ladprao and Nonthavej is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ladprao General Hospital and Nonthavej Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nonthavej Hospital Public 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 Nonthavej Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nonthavej Hospital Public has no effect on the direction of Ladprao General i.e., Ladprao General and Nonthavej Hospital go up and down completely randomly.
Pair Corralation between Ladprao General and Nonthavej Hospital
Assuming the 90 days trading horizon Ladprao General Hospital is expected to under-perform the Nonthavej Hospital. But the stock apears to be less risky and, when comparing its historical volatility, Ladprao General Hospital is 1.03 times less risky than Nonthavej Hospital. The stock trades about -0.14 of its potential returns per unit of risk. The Nonthavej Hospital Public is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,125 in Nonthavej Hospital Public on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Nonthavej Hospital Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ladprao General Hospital vs. Nonthavej Hospital Public
Performance |
| Timeline |
| Ladprao General Hospital |
| Nonthavej Hospital Public |
Ladprao General and Nonthavej Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ladprao General and Nonthavej Hospital
The main advantage of trading using opposite Ladprao General and Nonthavej Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ladprao General position performs unexpectedly, Nonthavej Hospital 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 Nonthavej Hospital will offset losses from the drop in Nonthavej Hospital'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 |
| Nonthavej Hospital vs. Bumrungrad Hospital Public | Nonthavej Hospital vs. Aikchol Hospital Public | Nonthavej Hospital vs. Ramkhamhaeng Hospital Public | Nonthavej Hospital vs. Wattana Karnpaet 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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