Correlation Between Nonthavej Hospital and Central Retail
Can any of the company-specific risk be diversified away by investing in both Nonthavej Hospital and Central Retail 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 Central Retail 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 Central Retail, you can compare the effects of market volatilities on Nonthavej Hospital and Central Retail 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 Central Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nonthavej Hospital and Central Retail.
Diversification Opportunities for Nonthavej Hospital and Central Retail
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nonthavej and Central is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Nonthavej Hospital Public and Central Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Retail 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 Central Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Retail has no effect on the direction of Nonthavej Hospital i.e., Nonthavej Hospital and Central Retail go up and down completely randomly.
Pair Corralation between Nonthavej Hospital and Central Retail
Assuming the 90 days trading horizon Nonthavej Hospital Public is expected to generate 32.1 times more return on investment than Central Retail. However, Nonthavej Hospital is 32.1 times more volatile than Central Retail. It trades about 0.06 of its potential returns per unit of risk. Central Retail is currently generating about -0.02 per unit of risk. If you would invest 3,535 in Nonthavej Hospital Public on September 14, 2024 and sell it today you would lose (385.00) from holding Nonthavej Hospital Public or give up 10.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nonthavej Hospital Public vs. Central Retail
Performance |
| Timeline |
| Nonthavej Hospital Public |
| Central Retail |
Nonthavej Hospital and Central Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nonthavej Hospital and Central Retail
The main advantage of trading using opposite Nonthavej Hospital and Central Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nonthavej Hospital position performs unexpectedly, Central Retail 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 Central Retail will offset losses from the drop in Central Retail's long position.| Nonthavej Hospital vs. Bumrungrad Hospital Public | Nonthavej Hospital vs. Aikchol Hospital Public | Nonthavej Hospital vs. Ramkhamhaeng Hospital Public | Nonthavej Hospital vs. Wattana Karnpaet Public |
| Central Retail vs. Thai Energy Storage | Central Retail vs. Siamgas and Petrochemicals | Central Retail vs. Somboon Advance Technology | Central Retail vs. LH Hotel Leasehold |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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