Correlation Between Mahachai Hospital and Sawang Export
Can any of the company-specific risk be diversified away by investing in both Mahachai Hospital and Sawang Export 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 Sawang Export 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 Sawang Export Public, you can compare the effects of market volatilities on Mahachai Hospital and Sawang Export 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 Sawang Export. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahachai Hospital and Sawang Export.
Diversification Opportunities for Mahachai Hospital and Sawang Export
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mahachai and Sawang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Mahachai Hospital Public and Sawang Export Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sawang Export 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 Sawang Export. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sawang Export Public has no effect on the direction of Mahachai Hospital i.e., Mahachai Hospital and Sawang Export go up and down completely randomly.
Pair Corralation between Mahachai Hospital and Sawang Export
Assuming the 90 days trading horizon Mahachai Hospital is expected to generate 1.09 times less return on investment than Sawang Export. In addition to that, Mahachai Hospital is 1.0 times more volatile than Sawang Export Public. It trades about 0.06 of its total potential returns per unit of risk. Sawang Export Public is currently generating about 0.07 per unit of volatility. If you would invest 1,430 in Sawang Export Public on September 1, 2024 and sell it today you would lose (210.00) from holding Sawang Export Public or give up 14.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.45% |
| Values | Daily Returns |
Mahachai Hospital Public vs. Sawang Export Public
Performance |
| Timeline |
| Mahachai Hospital Public |
| Sawang Export Public |
Mahachai Hospital and Sawang Export Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahachai Hospital and Sawang Export
The main advantage of trading using opposite Mahachai Hospital and Sawang Export positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahachai Hospital position performs unexpectedly, Sawang Export 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 Sawang Export will offset losses from the drop in Sawang Export'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 |
| Sawang Export vs. TRC Construction Public | Sawang Export vs. Bangkok Expressway and | Sawang Export vs. Lohakit Metal Public | Sawang Export vs. Gunkul Engineering 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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