Correlation Between NSL Foods and Vibhavadi Medical
Can any of the company-specific risk be diversified away by investing in both NSL Foods and Vibhavadi Medical 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 NSL Foods and Vibhavadi Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NSL Foods Public and Vibhavadi Medical Center, you can compare the effects of market volatilities on NSL Foods and Vibhavadi Medical 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 NSL Foods with a short position of Vibhavadi Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of NSL Foods and Vibhavadi Medical.
Diversification Opportunities for NSL Foods and Vibhavadi Medical
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between NSL and Vibhavadi is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding NSL Foods Public and Vibhavadi Medical Center in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vibhavadi Medical Center and NSL Foods 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 NSL Foods Public are associated (or correlated) with Vibhavadi Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vibhavadi Medical Center has no effect on the direction of NSL Foods i.e., NSL Foods and Vibhavadi Medical go up and down completely randomly.
Pair Corralation between NSL Foods and Vibhavadi Medical
Assuming the 90 days trading horizon NSL Foods is expected to generate 18.05 times less return on investment than Vibhavadi Medical. But when comparing it to its historical volatility, NSL Foods Public is 20.31 times less risky than Vibhavadi Medical. It trades about 0.05 of its potential returns per unit of risk. Vibhavadi Medical Center is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 251.00 in Vibhavadi Medical Center on September 14, 2024 and sell it today you would lose (41.00) from holding Vibhavadi Medical Center or give up 16.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NSL Foods Public vs. Vibhavadi Medical Center
Performance |
| Timeline |
| NSL Foods Public |
| Vibhavadi Medical Center |
NSL Foods and Vibhavadi Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NSL Foods and Vibhavadi Medical
The main advantage of trading using opposite NSL Foods and Vibhavadi Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NSL Foods position performs unexpectedly, Vibhavadi Medical 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 Vibhavadi Medical will offset losses from the drop in Vibhavadi Medical's long position.| NSL Foods vs. S Khonkaen Foods | NSL Foods vs. CHAOSUA FOODS INDUSTRY | NSL Foods vs. Digital Telecommunications Infrastructure | NSL Foods vs. PTT OIL RETAIL |
| Vibhavadi Medical vs. Chularat Hospital Public | Vibhavadi Medical vs. Bangkok Chain Hospital | Vibhavadi Medical vs. Bangkok Dusit Medical | Vibhavadi Medical vs. Bumrungrad Hospital 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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