Correlation Between Vibhavadi Medical and Union Petrochemical
Can any of the company-specific risk be diversified away by investing in both Vibhavadi Medical and Union Petrochemical 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 Union Petrochemical 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 Union Petrochemical Public, you can compare the effects of market volatilities on Vibhavadi Medical and Union Petrochemical 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 Union Petrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vibhavadi Medical and Union Petrochemical.
Diversification Opportunities for Vibhavadi Medical and Union Petrochemical
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Vibhavadi and Union is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Vibhavadi Medical Center and Union Petrochemical Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Petrochemical 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 Union Petrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Petrochemical has no effect on the direction of Vibhavadi Medical i.e., Vibhavadi Medical and Union Petrochemical go up and down completely randomly.
Pair Corralation between Vibhavadi Medical and Union Petrochemical
Assuming the 90 days trading horizon Vibhavadi Medical Center is expected to generate 1.0 times more return on investment than Union Petrochemical. However, Vibhavadi Medical Center is 1.0 times less risky than Union Petrochemical. It trades about 0.04 of its potential returns per unit of risk. Union Petrochemical Public is currently generating about 0.04 per unit of risk. If you would invest 260.00 in Vibhavadi Medical Center on November 2, 2024 and sell it today you would lose (70.00) from holding Vibhavadi Medical Center or give up 26.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vibhavadi Medical Center vs. Union Petrochemical Public
Performance |
| Timeline |
| Vibhavadi Medical Center |
| Union Petrochemical |
Vibhavadi Medical and Union Petrochemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vibhavadi Medical and Union Petrochemical
The main advantage of trading using opposite Vibhavadi Medical and Union Petrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vibhavadi Medical position performs unexpectedly, Union Petrochemical 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 Union Petrochemical will offset losses from the drop in Union Petrochemical'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 PCL |
| Union Petrochemical vs. Vibhavadi Medical Center | Union Petrochemical vs. TWZ Public | Union Petrochemical vs. WHA Public | Union Petrochemical vs. Tata Steel 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 CEOs Directory module to screen CEOs from public companies around the world.
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