Correlation Between Vibhavadi Medical and NSL Foods
Can any of the company-specific risk be diversified away by investing in both Vibhavadi Medical and NSL Foods 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 Vibhavadi Medical and NSL Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vibhavadi Medical Center and NSL Foods Public, you can compare the effects of market volatilities on Vibhavadi Medical and NSL Foods 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 Vibhavadi Medical with a short position of NSL Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vibhavadi Medical and NSL Foods.
Diversification Opportunities for Vibhavadi Medical and NSL Foods
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vibhavadi and NSL is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Vibhavadi Medical Center and NSL Foods Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSL Foods Public and Vibhavadi Medical 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 Vibhavadi Medical Center are associated (or correlated) with NSL Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSL Foods Public has no effect on the direction of Vibhavadi Medical i.e., Vibhavadi Medical and NSL Foods go up and down completely randomly.
Pair Corralation between Vibhavadi Medical and NSL Foods
Assuming the 90 days trading horizon Vibhavadi Medical Center is expected to generate 20.31 times more return on investment than NSL Foods. However, Vibhavadi Medical is 20.31 times more volatile than NSL Foods Public. It trades about 0.04 of its potential returns per unit of risk. NSL Foods Public is currently generating about 0.05 per unit of risk. If you would invest 251.00 in Vibhavadi Medical Center on September 14, 2024 and sell it today you would lose (41.00) from holding Vibhavadi Medical Center or give up 16.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vibhavadi Medical Center vs. NSL Foods Public
Performance |
| Timeline |
| Vibhavadi Medical Center |
| NSL Foods Public |
Vibhavadi Medical and NSL Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vibhavadi Medical and NSL Foods
The main advantage of trading using opposite Vibhavadi Medical and NSL Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vibhavadi Medical position performs unexpectedly, NSL Foods 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 NSL Foods will offset losses from the drop in NSL Foods' long position.| Vibhavadi Medical vs. Chularat Hospital Public | Vibhavadi Medical vs. Bangkok Chain Hospital | Vibhavadi Medical vs. Bangkok Dusit Medical | Vibhavadi Medical vs. Bumrungrad Hospital Public |
| NSL Foods vs. S Khonkaen Foods | NSL Foods vs. CHAOSUA FOODS INDUSTRY | NSL Foods vs. Digital Telecommunications Infrastructure | NSL Foods vs. PTT OIL RETAIL |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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