Correlation Between Wattana Karnpaet and Aikchol Hospital
Can any of the company-specific risk be diversified away by investing in both Wattana Karnpaet 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 Wattana Karnpaet and Aikchol Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wattana Karnpaet Public and Aikchol Hospital Public, you can compare the effects of market volatilities on Wattana Karnpaet 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 Wattana Karnpaet with a short position of Aikchol Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wattana Karnpaet and Aikchol Hospital.
Diversification Opportunities for Wattana Karnpaet and Aikchol Hospital
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Wattana and Aikchol is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Wattana Karnpaet 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 Wattana Karnpaet 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 Wattana Karnpaet 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 Wattana Karnpaet i.e., Wattana Karnpaet and Aikchol Hospital go up and down completely randomly.
Pair Corralation between Wattana Karnpaet and Aikchol Hospital
Assuming the 90 days trading horizon Wattana Karnpaet is expected to generate 35.1 times less return on investment than Aikchol Hospital. But when comparing it to its historical volatility, Wattana Karnpaet Public is 9.23 times less risky than Aikchol Hospital. It trades about 0.01 of its potential returns per unit of risk. Aikchol Hospital Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,480 in Aikchol Hospital Public on August 25, 2024 and sell it today you would earn a total of 100.00 from holding Aikchol Hospital Public or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Wattana Karnpaet Public vs. Aikchol Hospital Public
Performance |
| Timeline |
| Wattana Karnpaet Public |
| Aikchol Hospital Public |
Wattana Karnpaet and Aikchol Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wattana Karnpaet and Aikchol Hospital
The main advantage of trading using opposite Wattana Karnpaet and Aikchol Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wattana Karnpaet 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.| Wattana Karnpaet vs. Chularat Hospital Public | Wattana Karnpaet vs. Ekachai Medical Care | Wattana Karnpaet vs. Bangkok Chain Hospital | Wattana Karnpaet vs. Srivichaivejvivat Public |
| Aikchol Hospital vs. Chularat Hospital Public | Aikchol Hospital vs. Ekachai Medical Care | Aikchol Hospital vs. Bangkok Chain Hospital | Aikchol Hospital vs. Srivichaivejvivat 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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