Correlation Between Mahachai Hospital and Bangkok Dusit
Can any of the company-specific risk be diversified away by investing in both Mahachai Hospital 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 Mahachai Hospital and Bangkok Dusit 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 Bangkok Dusit Medical, you can compare the effects of market volatilities on Mahachai Hospital 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 Mahachai Hospital with a short position of Bangkok Dusit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahachai Hospital and Bangkok Dusit.
Diversification Opportunities for Mahachai Hospital and Bangkok Dusit
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mahachai and Bangkok is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Mahachai Hospital Public 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 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 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 Mahachai Hospital i.e., Mahachai Hospital and Bangkok Dusit go up and down completely randomly.
Pair Corralation between Mahachai Hospital and Bangkok Dusit
Assuming the 90 days trading horizon Mahachai Hospital Public is expected to under-perform the Bangkok Dusit. In addition to that, Mahachai Hospital is 1.01 times more volatile than Bangkok Dusit Medical. It trades about -0.29 of its total potential returns per unit of risk. Bangkok Dusit Medical is currently generating about -0.26 per unit of volatility. If you would invest 2,750 in Bangkok Dusit Medical on September 4, 2024 and sell it today you would lose (225.00) from holding Bangkok Dusit Medical or give up 8.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mahachai Hospital Public vs. Bangkok Dusit Medical
Performance |
| Timeline |
| Mahachai Hospital Public |
| Bangkok Dusit Medical |
Mahachai Hospital and Bangkok Dusit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahachai Hospital and Bangkok Dusit
The main advantage of trading using opposite Mahachai Hospital and Bangkok Dusit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahachai Hospital 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.| Mahachai Hospital vs. Ladprao General Hospital | Mahachai Hospital vs. Nonthavej Hospital Public | Mahachai Hospital vs. Wattana Karnpaet Public | Mahachai Hospital vs. Thonburi Medical Centre |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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