Correlation Between Natural Health and Bumrungrad Hospital
Can any of the company-specific risk be diversified away by investing in both Natural Health and Bumrungrad 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 Natural Health and Bumrungrad Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Natural Health Trends and Bumrungrad Hospital Public, you can compare the effects of market volatilities on Natural Health and Bumrungrad 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 Natural Health with a short position of Bumrungrad Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natural Health and Bumrungrad Hospital.
Diversification Opportunities for Natural Health and Bumrungrad Hospital
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Natural and Bumrungrad is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Natural Health Trends and Bumrungrad Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bumrungrad Hospital and Natural Health 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 Natural Health Trends are associated (or correlated) with Bumrungrad Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bumrungrad Hospital has no effect on the direction of Natural Health i.e., Natural Health and Bumrungrad Hospital go up and down completely randomly.
Pair Corralation between Natural Health and Bumrungrad Hospital
Assuming the 90 days trading horizon Natural Health is expected to generate 3.21 times less return on investment than Bumrungrad Hospital. But when comparing it to its historical volatility, Natural Health Trends is 2.43 times less risky than Bumrungrad Hospital. It trades about 0.06 of its potential returns per unit of risk. Bumrungrad Hospital Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 83.00 in Bumrungrad Hospital Public on August 28, 2024 and sell it today you would earn a total of 477.00 from holding Bumrungrad Hospital Public or generate 574.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natural Health Trends vs. Bumrungrad Hospital Public
Performance |
| Timeline |
| Natural Health Trends |
| Bumrungrad Hospital |
Natural Health and Bumrungrad Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natural Health and Bumrungrad Hospital
The main advantage of trading using opposite Natural Health and Bumrungrad Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natural Health position performs unexpectedly, Bumrungrad 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 Bumrungrad Hospital will offset losses from the drop in Bumrungrad Hospital's long position.| Natural Health vs. COMBA TELECOM SYST | Natural Health vs. EAGLE MATERIALS | Natural Health vs. Cogent Communications Holdings | Natural Health vs. SK TELECOM TDADR |
| Bumrungrad Hospital vs. Ramsay Health Care | Bumrungrad Hospital vs. Superior Plus Corp | Bumrungrad Hospital vs. NMI Holdings | Bumrungrad Hospital vs. Origin Agritech |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |