Correlation Between Eureka Design and Chularat Hospital
Can any of the company-specific risk be diversified away by investing in both Eureka Design and Chularat 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 Eureka Design and Chularat Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eureka Design Public and Chularat Hospital Public, you can compare the effects of market volatilities on Eureka Design and Chularat 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 Eureka Design with a short position of Chularat Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eureka Design and Chularat Hospital.
Diversification Opportunities for Eureka Design and Chularat Hospital
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eureka and Chularat is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Eureka Design Public and Chularat Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chularat Hospital Public and Eureka Design 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 Eureka Design Public are associated (or correlated) with Chularat Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chularat Hospital Public has no effect on the direction of Eureka Design i.e., Eureka Design and Chularat Hospital go up and down completely randomly.
Pair Corralation between Eureka Design and Chularat Hospital
Assuming the 90 days trading horizon Eureka Design Public is expected to generate 1.61 times more return on investment than Chularat Hospital. However, Eureka Design is 1.61 times more volatile than Chularat Hospital Public. It trades about 0.39 of its potential returns per unit of risk. Chularat Hospital Public is currently generating about -0.23 per unit of risk. If you would invest 51.00 in Eureka Design Public on September 4, 2024 and sell it today you would earn a total of 14.00 from holding Eureka Design Public or generate 27.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eureka Design Public vs. Chularat Hospital Public
Performance |
| Timeline |
| Eureka Design Public |
| Chularat Hospital Public |
Eureka Design and Chularat Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eureka Design and Chularat Hospital
The main advantage of trading using opposite Eureka Design and Chularat Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eureka Design position performs unexpectedly, Chularat 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 Chularat Hospital will offset losses from the drop in Chularat Hospital's long position.| Eureka Design vs. Delta Electronics Public | Eureka Design vs. Delta Electronics Public | Eureka Design vs. Airports of Thailand | Eureka Design vs. Airports of Thailand |
| Chularat Hospital vs. Bangkok Dusit Medical | Chularat Hospital vs. Bangkok Dusit Medical | Chularat Hospital vs. Bangkok Chain Hospital | Chularat Hospital vs. Chularat Hospital 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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