Correlation Between Nonthavej Hospital and Nawarat Patanakarn
Can any of the company-specific risk be diversified away by investing in both Nonthavej Hospital and Nawarat Patanakarn 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 Nawarat Patanakarn 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 Nawarat Patanakarn Public, you can compare the effects of market volatilities on Nonthavej Hospital and Nawarat Patanakarn 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 Nawarat Patanakarn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nonthavej Hospital and Nawarat Patanakarn.
Diversification Opportunities for Nonthavej Hospital and Nawarat Patanakarn
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nonthavej and Nawarat is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Nonthavej Hospital Public and Nawarat Patanakarn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nawarat Patanakarn 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 Nawarat Patanakarn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nawarat Patanakarn Public has no effect on the direction of Nonthavej Hospital i.e., Nonthavej Hospital and Nawarat Patanakarn go up and down completely randomly.
Pair Corralation between Nonthavej Hospital and Nawarat Patanakarn
Assuming the 90 days trading horizon Nonthavej Hospital Public is expected to generate 0.23 times more return on investment than Nawarat Patanakarn. However, Nonthavej Hospital Public is 4.4 times less risky than Nawarat Patanakarn. It trades about 0.05 of its potential returns per unit of risk. Nawarat Patanakarn Public is currently generating about -0.3 per unit of risk. If you would invest 3,100 in Nonthavej Hospital Public on August 25, 2024 and sell it today you would earn a total of 25.00 from holding Nonthavej Hospital Public or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nonthavej Hospital Public vs. Nawarat Patanakarn Public
Performance |
| Timeline |
| Nonthavej Hospital Public |
| Nawarat Patanakarn Public |
Nonthavej Hospital and Nawarat Patanakarn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nonthavej Hospital and Nawarat Patanakarn
The main advantage of trading using opposite Nonthavej Hospital and Nawarat Patanakarn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nonthavej Hospital position performs unexpectedly, Nawarat Patanakarn 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 Nawarat Patanakarn will offset losses from the drop in Nawarat Patanakarn'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 |
| Nawarat Patanakarn vs. Tata Steel Public | Nawarat Patanakarn vs. Thaifoods Group Public | Nawarat Patanakarn vs. TMT Steel Public | Nawarat Patanakarn vs. The Erawan Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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