Correlation Between Siam Commercial and Bumrungrad Hospital
Can any of the company-specific risk be diversified away by investing in both Siam Commercial 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 Siam Commercial and Bumrungrad Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Siam Commercial and Bumrungrad Hospital PCL, you can compare the effects of market volatilities on Siam Commercial 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 Siam Commercial with a short position of Bumrungrad Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Commercial and Bumrungrad Hospital.
Diversification Opportunities for Siam Commercial and Bumrungrad Hospital
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siam and Bumrungrad is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Commercial and Bumrungrad Hospital PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bumrungrad Hospital PCL and Siam Commercial 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 The Siam Commercial 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 PCL has no effect on the direction of Siam Commercial i.e., Siam Commercial and Bumrungrad Hospital go up and down completely randomly.
Pair Corralation between Siam Commercial and Bumrungrad Hospital
Assuming the 90 days trading horizon The Siam Commercial is expected to generate 0.67 times more return on investment than Bumrungrad Hospital. However, The Siam Commercial is 1.49 times less risky than Bumrungrad Hospital. It trades about 0.25 of its potential returns per unit of risk. Bumrungrad Hospital PCL is currently generating about -0.08 per unit of risk. If you would invest 11,699 in The Siam Commercial on October 24, 2024 and sell it today you would earn a total of 551.00 from holding The Siam Commercial or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Siam Commercial vs. Bumrungrad Hospital PCL
Performance |
| Timeline |
| Siam Commercial |
| Bumrungrad Hospital PCL |
Siam Commercial and Bumrungrad Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Commercial and Bumrungrad Hospital
The main advantage of trading using opposite Siam Commercial and Bumrungrad Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Commercial 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.| Siam Commercial vs. The Siam Cement | Siam Commercial vs. Krung Thai Bank | Siam Commercial vs. Airports of Thailand | Siam Commercial vs. Kasikornbank Public |
| Bumrungrad Hospital vs. Bangkok Dusit Medical | Bumrungrad Hospital vs. CP ALL Public | Bumrungrad Hospital vs. Central Pattana Public | Bumrungrad Hospital vs. Airports of Thailand |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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