Correlation Between Nonthavej Hospital and Bangkok Chain
Can any of the company-specific risk be diversified away by investing in both Nonthavej Hospital and Bangkok Chain 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 Bangkok Chain 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 Bangkok Chain Hospital, you can compare the effects of market volatilities on Nonthavej Hospital and Bangkok Chain 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 Bangkok Chain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nonthavej Hospital and Bangkok Chain.
Diversification Opportunities for Nonthavej Hospital and Bangkok Chain
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nonthavej and Bangkok is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Nonthavej Hospital Public and Bangkok Chain Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Chain Hospital 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 Bangkok Chain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Chain Hospital has no effect on the direction of Nonthavej Hospital i.e., Nonthavej Hospital and Bangkok Chain go up and down completely randomly.
Pair Corralation between Nonthavej Hospital and Bangkok Chain
Assuming the 90 days trading horizon Nonthavej Hospital Public is expected to generate 0.46 times more return on investment than Bangkok Chain. However, Nonthavej Hospital Public is 2.2 times less risky than Bangkok Chain. It trades about -0.04 of its potential returns per unit of risk. Bangkok Chain Hospital is currently generating about -0.07 per unit of risk. If you would invest 3,150 in Nonthavej Hospital Public on September 12, 2024 and sell it today you would lose (25.00) from holding Nonthavej Hospital Public or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nonthavej Hospital Public vs. Bangkok Chain Hospital
Performance |
| Timeline |
| Nonthavej Hospital Public |
| Bangkok Chain Hospital |
Nonthavej Hospital and Bangkok Chain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nonthavej Hospital and Bangkok Chain
The main advantage of trading using opposite Nonthavej Hospital and Bangkok Chain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nonthavej Hospital position performs unexpectedly, Bangkok Chain 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 Bangkok Chain will offset losses from the drop in Bangkok Chain's long position.| Nonthavej Hospital vs. Rajthanee Hospital Public | Nonthavej Hospital vs. Chularat Hospital Public | Nonthavej Hospital vs. Ekachai Medical Care | Nonthavej Hospital vs. Bangkok Chain Hospital |
| Bangkok Chain vs. Bangkok Dusit Medical | Bangkok Chain vs. Bumrungrad Hospital Public | Bangkok Chain vs. Bangkok Chain Hospital | Bangkok Chain vs. Rajthanee 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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