Correlation Between PLDT and Bumrungrad Hospital
Can any of the company-specific risk be diversified away by investing in both PLDT and Bumrungrad Hospital 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 PLDT and Bumrungrad Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLDT Inc and Bumrungrad Hospital Public, you can compare the effects of market volatilities on PLDT and Bumrungrad Hospital 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 PLDT with a short position of Bumrungrad Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLDT and Bumrungrad Hospital.
Diversification Opportunities for PLDT and Bumrungrad Hospital
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PLDT and Bumrungrad is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding PLDT Inc and Bumrungrad Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bumrungrad Hospital and PLDT 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 PLDT Inc are associated (or correlated) with Bumrungrad Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bumrungrad Hospital has no effect on the direction of PLDT i.e., PLDT and Bumrungrad Hospital go up and down completely randomly.
Pair Corralation between PLDT and Bumrungrad Hospital
Assuming the 90 days horizon PLDT Inc is expected to generate 0.77 times more return on investment than Bumrungrad Hospital. However, PLDT Inc is 1.29 times less risky than Bumrungrad Hospital. It trades about 0.03 of its potential returns per unit of risk. Bumrungrad Hospital Public is currently generating about -0.06 per unit of risk. If you would invest 2,060 in PLDT Inc on September 13, 2024 and sell it today you would earn a total of 20.00 from holding PLDT Inc or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLDT Inc vs. Bumrungrad Hospital Public
Performance |
| Timeline |
| PLDT Inc |
| Bumrungrad Hospital |
PLDT and Bumrungrad Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLDT and Bumrungrad Hospital
The main advantage of trading using opposite PLDT and Bumrungrad Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLDT position performs unexpectedly, Bumrungrad Hospital 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 Bumrungrad Hospital will offset losses from the drop in Bumrungrad Hospital's long position.| PLDT vs. CyberArk Software | PLDT vs. Constellation Software | PLDT vs. X FAB Silicon Foundries | PLDT vs. Taiwan Semiconductor Manufacturing |
| Bumrungrad Hospital vs. Ramsay Health Care | Bumrungrad Hospital vs. Universal Health Services | Bumrungrad Hospital vs. Superior Plus Corp | Bumrungrad Hospital vs. SIVERS SEMICONDUCTORS AB |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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