Correlation Between Nonthavej Hospital and Metro Systems
Can any of the company-specific risk be diversified away by investing in both Nonthavej Hospital and Metro Systems 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 Metro Systems 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 Metro Systems, you can compare the effects of market volatilities on Nonthavej Hospital and Metro Systems 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 Metro Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nonthavej Hospital and Metro Systems.
Diversification Opportunities for Nonthavej Hospital and Metro Systems
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nonthavej and Metro is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Nonthavej Hospital Public and Metro Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro Systems 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 Metro Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro Systems has no effect on the direction of Nonthavej Hospital i.e., Nonthavej Hospital and Metro Systems go up and down completely randomly.
Pair Corralation between Nonthavej Hospital and Metro Systems
Assuming the 90 days trading horizon Nonthavej Hospital Public is expected to generate 1.14 times more return on investment than Metro Systems. However, Nonthavej Hospital is 1.14 times more volatile than Metro Systems. It trades about 0.0 of its potential returns per unit of risk. Metro Systems is currently generating about -0.15 per unit of risk. If you would invest 3,125 in Nonthavej Hospital Public on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Nonthavej Hospital Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nonthavej Hospital Public vs. Metro Systems
Performance |
| Timeline |
| Nonthavej Hospital Public |
| Metro Systems |
Nonthavej Hospital and Metro Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nonthavej Hospital and Metro Systems
The main advantage of trading using opposite Nonthavej Hospital and Metro Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nonthavej Hospital position performs unexpectedly, Metro Systems 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 Metro Systems will offset losses from the drop in Metro Systems' 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 |
| Metro Systems vs. MFEC PCL | Metro Systems vs. Internet Thailand Public | Metro Systems vs. Hana Microelectronics Public | Metro Systems vs. SiS Distribution 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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