Correlation Between Regional Container and Mahachai Hospital
Can any of the company-specific risk be diversified away by investing in both Regional Container and Mahachai 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 Regional Container and Mahachai Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regional Container Lines and Mahachai Hospital Public, you can compare the effects of market volatilities on Regional Container and Mahachai 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 Regional Container with a short position of Mahachai Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regional Container and Mahachai Hospital.
Diversification Opportunities for Regional Container and Mahachai Hospital
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Regional and Mahachai is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Regional Container Lines and Mahachai Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahachai Hospital Public and Regional Container 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 Regional Container Lines are associated (or correlated) with Mahachai Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahachai Hospital Public has no effect on the direction of Regional Container i.e., Regional Container and Mahachai Hospital go up and down completely randomly.
Pair Corralation between Regional Container and Mahachai Hospital
Assuming the 90 days trading horizon Regional Container Lines is expected to generate 1.99 times more return on investment than Mahachai Hospital. However, Regional Container is 1.99 times more volatile than Mahachai Hospital Public. It trades about 0.23 of its potential returns per unit of risk. Mahachai Hospital Public is currently generating about -0.28 per unit of risk. If you would invest 2,408 in Regional Container Lines on August 31, 2024 and sell it today you would earn a total of 417.00 from holding Regional Container Lines or generate 17.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regional Container Lines vs. Mahachai Hospital Public
Performance |
| Timeline |
| Regional Container Lines |
| Mahachai Hospital Public |
Regional Container and Mahachai Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regional Container and Mahachai Hospital
The main advantage of trading using opposite Regional Container and Mahachai Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regional Container position performs unexpectedly, Mahachai 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 Mahachai Hospital will offset losses from the drop in Mahachai Hospital's long position.| Regional Container vs. Precious Shipping Public | Regional Container vs. Regional Container Lines | Regional Container vs. Begistics Public | Regional Container vs. Raja Ferry Port |
| Mahachai Hospital vs. AP Public | Mahachai Hospital vs. Advanced Information Technology | Mahachai Hospital vs. AJ Plast Public | Mahachai Hospital vs. Berli Jucker 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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