Correlation Between Vibhavadi Medical and Taokaenoi Food
Can any of the company-specific risk be diversified away by investing in both Vibhavadi Medical and Taokaenoi Food 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 Taokaenoi Food 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 Taokaenoi Food Marketing, you can compare the effects of market volatilities on Vibhavadi Medical and Taokaenoi Food 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 Taokaenoi Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vibhavadi Medical and Taokaenoi Food.
Diversification Opportunities for Vibhavadi Medical and Taokaenoi Food
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vibhavadi and Taokaenoi is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Vibhavadi Medical Center and Taokaenoi Food Marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taokaenoi Food Marketing 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 Taokaenoi Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taokaenoi Food Marketing has no effect on the direction of Vibhavadi Medical i.e., Vibhavadi Medical and Taokaenoi Food go up and down completely randomly.
Pair Corralation between Vibhavadi Medical and Taokaenoi Food
Assuming the 90 days trading horizon Vibhavadi Medical Center is expected to generate 0.64 times more return on investment than Taokaenoi Food. However, Vibhavadi Medical Center is 1.56 times less risky than Taokaenoi Food. It trades about 0.42 of its potential returns per unit of risk. Taokaenoi Food Marketing is currently generating about -0.34 per unit of risk. If you would invest 182.00 in Vibhavadi Medical Center on September 13, 2024 and sell it today you would earn a total of 28.00 from holding Vibhavadi Medical Center or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vibhavadi Medical Center vs. Taokaenoi Food Marketing
Performance |
| Timeline |
| Vibhavadi Medical Center |
| Taokaenoi Food Marketing |
Vibhavadi Medical and Taokaenoi Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vibhavadi Medical and Taokaenoi Food
The main advantage of trading using opposite Vibhavadi Medical and Taokaenoi Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vibhavadi Medical position performs unexpectedly, Taokaenoi Food 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 Taokaenoi Food will offset losses from the drop in Taokaenoi Food's 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 |
| Taokaenoi Food vs. GFPT Public | Taokaenoi Food vs. Dynasty Ceramic Public | Taokaenoi Food vs. Haad Thip Public | Taokaenoi Food vs. The Erawan Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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