Correlation Between TRV Rubber and Bumrungrad Hospital
Can any of the company-specific risk be diversified away by investing in both TRV Rubber 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 TRV Rubber and Bumrungrad Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRV Rubber Products and Bumrungrad Hospital Public, you can compare the effects of market volatilities on TRV Rubber 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 TRV Rubber with a short position of Bumrungrad Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRV Rubber and Bumrungrad Hospital.
Diversification Opportunities for TRV Rubber and Bumrungrad Hospital
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between TRV and Bumrungrad is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding TRV Rubber Products and Bumrungrad Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bumrungrad Hospital and TRV Rubber 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 TRV Rubber Products 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 TRV Rubber i.e., TRV Rubber and Bumrungrad Hospital go up and down completely randomly.
Pair Corralation between TRV Rubber and Bumrungrad Hospital
Assuming the 90 days trading horizon TRV Rubber Products is expected to under-perform the Bumrungrad Hospital. In addition to that, TRV Rubber is 2.17 times more volatile than Bumrungrad Hospital Public. It trades about -0.01 of its total potential returns per unit of risk. Bumrungrad Hospital Public is currently generating about 0.01 per unit of volatility. If you would invest 19,827 in Bumrungrad Hospital Public on September 2, 2024 and sell it today you would earn a total of 973.00 from holding Bumrungrad Hospital Public or generate 4.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
TRV Rubber Products vs. Bumrungrad Hospital Public
Performance |
| Timeline |
| TRV Rubber Products |
| Bumrungrad Hospital |
TRV Rubber and Bumrungrad Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRV Rubber and Bumrungrad Hospital
The main advantage of trading using opposite TRV Rubber and Bumrungrad Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRV Rubber 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.| TRV Rubber vs. Silicon Craft Technology | TRV Rubber vs. Information and Communication | TRV Rubber vs. Healthlead Public | TRV Rubber vs. Bioscience Animal Health |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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