Correlation Between Mahachai Hospital and Aikchol Hospital
Can any of the company-specific risk be diversified away by investing in both Mahachai Hospital and Aikchol 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 Mahachai Hospital and Aikchol Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mahachai Hospital Public and Aikchol Hospital Public, you can compare the effects of market volatilities on Mahachai Hospital and Aikchol 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 Mahachai Hospital with a short position of Aikchol Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahachai Hospital and Aikchol Hospital.
Diversification Opportunities for Mahachai Hospital and Aikchol Hospital
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mahachai and Aikchol is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Mahachai Hospital Public and Aikchol Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aikchol Hospital Public and Mahachai Hospital 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 Mahachai Hospital Public are associated (or correlated) with Aikchol Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aikchol Hospital Public has no effect on the direction of Mahachai Hospital i.e., Mahachai Hospital and Aikchol Hospital go up and down completely randomly.
Pair Corralation between Mahachai Hospital and Aikchol Hospital
Assuming the 90 days trading horizon Mahachai Hospital Public is expected to under-perform the Aikchol Hospital. In addition to that, Mahachai Hospital is 2.39 times more volatile than Aikchol Hospital Public. It trades about -0.28 of its total potential returns per unit of risk. Aikchol Hospital Public is currently generating about -0.2 per unit of volatility. If you would invest 1,600 in Aikchol Hospital Public on September 1, 2024 and sell it today you would lose (50.00) from holding Aikchol Hospital Public or give up 3.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mahachai Hospital Public vs. Aikchol Hospital Public
Performance |
| Timeline |
| Mahachai Hospital Public |
| Aikchol Hospital Public |
Mahachai Hospital and Aikchol Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahachai Hospital and Aikchol Hospital
The main advantage of trading using opposite Mahachai Hospital and Aikchol Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahachai Hospital position performs unexpectedly, Aikchol 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 Aikchol Hospital will offset losses from the drop in Aikchol Hospital's long position.| Mahachai Hospital vs. AP Public | Mahachai Hospital vs. Advanced Information Technology | Mahachai Hospital vs. AJ Plast Public | Mahachai Hospital vs. Berli Jucker Public |
| Aikchol Hospital vs. AP Public | Aikchol Hospital vs. Bumrungrad Hospital Public | Aikchol Hospital vs. Advanced Information Technology | Aikchol Hospital 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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