Correlation Between Nonthavej Hospital and Navakij Insurance
Can any of the company-specific risk be diversified away by investing in both Nonthavej Hospital and Navakij Insurance 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 Navakij Insurance 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 The Navakij Insurance, you can compare the effects of market volatilities on Nonthavej Hospital and Navakij Insurance 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 Navakij Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nonthavej Hospital and Navakij Insurance.
Diversification Opportunities for Nonthavej Hospital and Navakij Insurance
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nonthavej and Navakij is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Nonthavej Hospital Public and The Navakij Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navakij Insurance 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 Navakij Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navakij Insurance has no effect on the direction of Nonthavej Hospital i.e., Nonthavej Hospital and Navakij Insurance go up and down completely randomly.
Pair Corralation between Nonthavej Hospital and Navakij Insurance
Assuming the 90 days trading horizon Nonthavej Hospital is expected to generate 1.01 times less return on investment than Navakij Insurance. But when comparing it to its historical volatility, Nonthavej Hospital Public is 1.0 times less risky than Navakij Insurance. It trades about 0.04 of its potential returns per unit of risk. The Navakij Insurance is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,009 in The Navakij Insurance on September 14, 2024 and sell it today you would lose (519.00) from holding The Navakij Insurance or give up 17.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nonthavej Hospital Public vs. The Navakij Insurance
Performance |
| Timeline |
| Nonthavej Hospital Public |
| Navakij Insurance |
Nonthavej Hospital and Navakij Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nonthavej Hospital and Navakij Insurance
The main advantage of trading using opposite Nonthavej Hospital and Navakij Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nonthavej Hospital position performs unexpectedly, Navakij Insurance 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 Navakij Insurance will offset losses from the drop in Navakij Insurance'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 |
| Navakij Insurance vs. Ocean Glass Public | Navakij Insurance vs. Pan Asia Footwear | Navakij Insurance vs. Nonthavej Hospital Public | Navakij Insurance vs. Newcity 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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