Correlation Between Mahachai Hospital and Prodigy Public
Can any of the company-specific risk be diversified away by investing in both Mahachai Hospital and Prodigy Public 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 Prodigy Public 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 Prodigy Public, you can compare the effects of market volatilities on Mahachai Hospital and Prodigy Public 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 Prodigy Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahachai Hospital and Prodigy Public.
Diversification Opportunities for Mahachai Hospital and Prodigy Public
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mahachai and Prodigy is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Mahachai Hospital Public and Prodigy Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prodigy 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 Prodigy Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prodigy Public has no effect on the direction of Mahachai Hospital i.e., Mahachai Hospital and Prodigy Public go up and down completely randomly.
Pair Corralation between Mahachai Hospital and Prodigy Public
Assuming the 90 days trading horizon Mahachai Hospital is expected to generate 1.11 times less return on investment than Prodigy Public. But when comparing it to its historical volatility, Mahachai Hospital Public is 1.0 times less risky than Prodigy Public. It trades about 0.05 of its potential returns per unit of risk. Prodigy Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 271.00 in Prodigy Public on September 12, 2024 and sell it today you would lose (3.00) from holding Prodigy Public or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.07% |
| Values | Daily Returns |
Mahachai Hospital Public vs. Prodigy Public
Performance |
| Timeline |
| Mahachai Hospital Public |
| Prodigy Public |
Mahachai Hospital and Prodigy Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahachai Hospital and Prodigy Public
The main advantage of trading using opposite Mahachai Hospital and Prodigy Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahachai Hospital position performs unexpectedly, Prodigy Public 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 Prodigy Public will offset losses from the drop in Prodigy Public's long position.| Mahachai Hospital vs. Rajthanee Hospital Public | Mahachai Hospital vs. Chularat Hospital Public | Mahachai Hospital vs. Ekachai Medical Care | Mahachai Hospital vs. Bangkok Chain Hospital |
| Prodigy Public vs. Mahachai Hospital Public | Prodigy Public vs. Royal Orchid Hotel | Prodigy Public vs. Taokaenoi Food Marketing | Prodigy Public vs. Central Plaza Hotel |
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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