Correlation Between Srivichaivejvivat and Bangkok Dusit
Can any of the company-specific risk be diversified away by investing in both Srivichaivejvivat and Bangkok Dusit 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 Srivichaivejvivat and Bangkok Dusit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Srivichaivejvivat Public and Bangkok Dusit Medical, you can compare the effects of market volatilities on Srivichaivejvivat and Bangkok Dusit 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 Srivichaivejvivat with a short position of Bangkok Dusit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Srivichaivejvivat and Bangkok Dusit.
Diversification Opportunities for Srivichaivejvivat and Bangkok Dusit
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Srivichaivejvivat and Bangkok is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Srivichaivejvivat Public and Bangkok Dusit Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Dusit Medical and Srivichaivejvivat 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 Srivichaivejvivat Public are associated (or correlated) with Bangkok Dusit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Dusit Medical has no effect on the direction of Srivichaivejvivat i.e., Srivichaivejvivat and Bangkok Dusit go up and down completely randomly.
Pair Corralation between Srivichaivejvivat and Bangkok Dusit
Assuming the 90 days trading horizon Srivichaivejvivat Public is expected to generate 1.29 times more return on investment than Bangkok Dusit. However, Srivichaivejvivat is 1.29 times more volatile than Bangkok Dusit Medical. It trades about 0.04 of its potential returns per unit of risk. Bangkok Dusit Medical is currently generating about 0.0 per unit of risk. If you would invest 774.00 in Srivichaivejvivat Public on August 28, 2024 and sell it today you would earn a total of 161.00 from holding Srivichaivejvivat Public or generate 20.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Srivichaivejvivat Public vs. Bangkok Dusit Medical
Performance |
| Timeline |
| Srivichaivejvivat Public |
| Bangkok Dusit Medical |
Srivichaivejvivat and Bangkok Dusit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Srivichaivejvivat and Bangkok Dusit
The main advantage of trading using opposite Srivichaivejvivat and Bangkok Dusit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Srivichaivejvivat position performs unexpectedly, Bangkok Dusit 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 Bangkok Dusit will offset losses from the drop in Bangkok Dusit's long position.| Srivichaivejvivat vs. Ekachai Medical Care | Srivichaivejvivat vs. Bangkok Chain Hospital | Srivichaivejvivat vs. Chularat Hospital Public | Srivichaivejvivat vs. Rajthanee Hospital Public |
| Bangkok Dusit vs. Bumrungrad Hospital Public | Bangkok Dusit vs. Bangkok Chain Hospital | Bangkok Dusit vs. Ramkhamhaeng Hospital Public | Bangkok Dusit vs. Vibhavadi Medical Center |
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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