Correlation Between Thonburi Healthcare and Sikarin Public
Can any of the company-specific risk be diversified away by investing in both Thonburi Healthcare and Sikarin Public 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 Sikarin Public 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 Sikarin Public, you can compare the effects of market volatilities on Thonburi Healthcare and Sikarin Public 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 Sikarin Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thonburi Healthcare and Sikarin Public.
Diversification Opportunities for Thonburi Healthcare and Sikarin Public
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thonburi and Sikarin is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Thonburi Healthcare Grp and Sikarin Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sikarin Public 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 Sikarin Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sikarin Public has no effect on the direction of Thonburi Healthcare i.e., Thonburi Healthcare and Sikarin Public go up and down completely randomly.
Pair Corralation between Thonburi Healthcare and Sikarin Public
Assuming the 90 days trading horizon Thonburi Healthcare Grp is expected to generate 6.15 times more return on investment than Sikarin Public. However, Thonburi Healthcare is 6.15 times more volatile than Sikarin Public. It trades about 0.06 of its potential returns per unit of risk. Sikarin Public is currently generating about 0.13 per unit of risk. If you would invest 1,690 in Thonburi Healthcare Grp on September 14, 2024 and sell it today you would earn a total of 70.00 from holding Thonburi Healthcare Grp or generate 4.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thonburi Healthcare Grp vs. Sikarin Public
Performance |
| Timeline |
| Thonburi Healthcare Grp |
| Sikarin Public |
Thonburi Healthcare and Sikarin Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thonburi Healthcare and Sikarin Public
The main advantage of trading using opposite Thonburi Healthcare and Sikarin Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thonburi Healthcare position performs unexpectedly, Sikarin Public 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 Sikarin Public will offset losses from the drop in Sikarin Public's long position.| Thonburi Healthcare vs. Bangkok Dusit Medical | Thonburi Healthcare vs. Bangkok Chain Hospital | Thonburi Healthcare vs. Bumrungrad Hospital Public | Thonburi Healthcare vs. Chularat Hospital Public |
| Sikarin Public vs. Rajthanee Hospital Public | Sikarin Public vs. Chularat Hospital Public | Sikarin Public vs. Ekachai Medical Care | Sikarin Public vs. Bangkok Chain Hospital |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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