Correlation Between CVW CLEANTECH and Bumrungrad Hospital
Can any of the company-specific risk be diversified away by investing in both CVW CLEANTECH 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 CVW CLEANTECH and Bumrungrad Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVW CLEANTECH INC and Bumrungrad Hospital Public, you can compare the effects of market volatilities on CVW CLEANTECH 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 CVW CLEANTECH with a short position of Bumrungrad Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVW CLEANTECH and Bumrungrad Hospital.
Diversification Opportunities for CVW CLEANTECH and Bumrungrad Hospital
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CVW and Bumrungrad is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding CVW CLEANTECH 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 CVW CLEANTECH 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 CVW CLEANTECH 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 CVW CLEANTECH i.e., CVW CLEANTECH and Bumrungrad Hospital go up and down completely randomly.
Pair Corralation between CVW CLEANTECH and Bumrungrad Hospital
Assuming the 90 days trading horizon CVW CLEANTECH is expected to generate 3.22 times less return on investment than Bumrungrad Hospital. But when comparing it to its historical volatility, CVW CLEANTECH INC is 1.49 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 0.07 of returns per unit of risk over similar time horizon. If you would invest 164.00 in Bumrungrad Hospital Public on September 12, 2024 and sell it today you would earn a total of 386.00 from holding Bumrungrad Hospital Public or generate 235.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVW CLEANTECH INC vs. Bumrungrad Hospital Public
Performance |
| Timeline |
| CVW CLEANTECH INC |
| Bumrungrad Hospital |
CVW CLEANTECH and Bumrungrad Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVW CLEANTECH and Bumrungrad Hospital
The main advantage of trading using opposite CVW CLEANTECH and Bumrungrad Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVW CLEANTECH 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.| CVW CLEANTECH vs. American Lithium Corp | CVW CLEANTECH vs. ADRIATIC METALS LS 013355 | CVW CLEANTECH vs. Superior Plus Corp | CVW CLEANTECH vs. SIVERS SEMICONDUCTORS AB |
| 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |