Correlation Between Nonthavej Hospital and AP Public
Can any of the company-specific risk be diversified away by investing in both Nonthavej Hospital and AP 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 Nonthavej Hospital and AP Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nonthavej Hospital Public and AP Public, you can compare the effects of market volatilities on Nonthavej Hospital and AP 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 Nonthavej Hospital with a short position of AP Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nonthavej Hospital and AP Public.
Diversification Opportunities for Nonthavej Hospital and AP Public
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nonthavej and AP Public is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Nonthavej Hospital Public and AP Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Public and Nonthavej 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 Nonthavej Hospital Public are associated (or correlated) with AP Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Public has no effect on the direction of Nonthavej Hospital i.e., Nonthavej Hospital and AP Public go up and down completely randomly.
Pair Corralation between Nonthavej Hospital and AP Public
Assuming the 90 days trading horizon Nonthavej Hospital Public is expected to under-perform the AP Public. But the stock apears to be less risky and, when comparing its historical volatility, Nonthavej Hospital Public is 1.74 times less risky than AP Public. The stock trades about -0.07 of its potential returns per unit of risk. The AP Public is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 810.00 in AP Public on November 30, 2024 and sell it today you would earn a total of 85.00 from holding AP Public or generate 10.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nonthavej Hospital Public vs. AP Public
Performance |
| Timeline |
| Nonthavej Hospital Public |
| AP Public |
Nonthavej Hospital and AP Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nonthavej Hospital and AP Public
The main advantage of trading using opposite Nonthavej Hospital and AP Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nonthavej Hospital position performs unexpectedly, AP 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 AP Public will offset losses from the drop in AP Public's long position.| Nonthavej Hospital vs. Bumrungrad Hospital PCL | Nonthavej Hospital vs. Aikchol Hospital Public | Nonthavej Hospital vs. Ramkhamhaeng Hospital Public | Nonthavej Hospital vs. Wattana Karnpaet Public |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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