Correlation Between Thonburi Healthcare and CENTRAL RETAIL
Can any of the company-specific risk be diversified away by investing in both Thonburi Healthcare and CENTRAL RETAIL 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 Thonburi Healthcare and CENTRAL RETAIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thonburi Healthcare Grp and CENTRAL RETAIL P, you can compare the effects of market volatilities on Thonburi Healthcare and CENTRAL RETAIL 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 Thonburi Healthcare with a short position of CENTRAL RETAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thonburi Healthcare and CENTRAL RETAIL.
Diversification Opportunities for Thonburi Healthcare and CENTRAL RETAIL
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thonburi and CENTRAL is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Thonburi Healthcare Grp and CENTRAL RETAIL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTRAL RETAIL P and Thonburi Healthcare 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 Thonburi Healthcare Grp are associated (or correlated) with CENTRAL RETAIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTRAL RETAIL P has no effect on the direction of Thonburi Healthcare i.e., Thonburi Healthcare and CENTRAL RETAIL go up and down completely randomly.
Pair Corralation between Thonburi Healthcare and CENTRAL RETAIL
Assuming the 90 days trading horizon Thonburi Healthcare Grp is expected to generate 0.9 times more return on investment than CENTRAL RETAIL. However, Thonburi Healthcare Grp is 1.11 times less risky than CENTRAL RETAIL. It trades about -0.14 of its potential returns per unit of risk. CENTRAL RETAIL P is currently generating about -0.21 per unit of risk. If you would invest 1,510 in Thonburi Healthcare Grp on November 3, 2024 and sell it today you would lose (150.00) from holding Thonburi Healthcare Grp or give up 9.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thonburi Healthcare Grp vs. CENTRAL RETAIL P
Performance |
| Timeline |
| Thonburi Healthcare Grp |
| CENTRAL RETAIL P |
Thonburi Healthcare and CENTRAL RETAIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thonburi Healthcare and CENTRAL RETAIL
The main advantage of trading using opposite Thonburi Healthcare and CENTRAL RETAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thonburi Healthcare position performs unexpectedly, CENTRAL RETAIL 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 CENTRAL RETAIL will offset losses from the drop in CENTRAL RETAIL's long position.| Thonburi Healthcare vs. Bangkok Dusit Medical | Thonburi Healthcare vs. Bangkok Chain Hospital | Thonburi Healthcare vs. Bumrungrad Hospital PCL | Thonburi Healthcare vs. Chularat Hospital Public |
| CENTRAL RETAIL vs. BPS TECHNOLOGY PUBLIC | CENTRAL RETAIL vs. Silicon Craft Technology | CENTRAL RETAIL vs. Kiattana Transport Public | CENTRAL RETAIL vs. Premier Technology 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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