Correlation Between Srivichaivejvivat and Ladprao General
Can any of the company-specific risk be diversified away by investing in both Srivichaivejvivat and Ladprao General 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 Ladprao General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Srivichaivejvivat Public and Ladprao General Hospital, you can compare the effects of market volatilities on Srivichaivejvivat and Ladprao General 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 Ladprao General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Srivichaivejvivat and Ladprao General.
Diversification Opportunities for Srivichaivejvivat and Ladprao General
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Srivichaivejvivat and Ladprao is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Srivichaivejvivat Public and Ladprao General Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladprao General Hospital 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 Ladprao General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladprao General Hospital has no effect on the direction of Srivichaivejvivat i.e., Srivichaivejvivat and Ladprao General go up and down completely randomly.
Pair Corralation between Srivichaivejvivat and Ladprao General
Assuming the 90 days trading horizon Srivichaivejvivat Public is expected to under-perform the Ladprao General. In addition to that, Srivichaivejvivat is 1.91 times more volatile than Ladprao General Hospital. It trades about -0.18 of its total potential returns per unit of risk. Ladprao General Hospital is currently generating about -0.18 per unit of volatility. If you would invest 454.00 in Ladprao General Hospital on August 27, 2024 and sell it today you would lose (14.00) from holding Ladprao General Hospital or give up 3.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Srivichaivejvivat Public vs. Ladprao General Hospital
Performance |
| Timeline |
| Srivichaivejvivat Public |
| Ladprao General Hospital |
Srivichaivejvivat and Ladprao General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Srivichaivejvivat and Ladprao General
The main advantage of trading using opposite Srivichaivejvivat and Ladprao General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Srivichaivejvivat position performs unexpectedly, Ladprao General 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 Ladprao General will offset losses from the drop in Ladprao General's long position.| Srivichaivejvivat vs. Ekachai Medical Care | Srivichaivejvivat vs. Bangkok Chain Hospital | Srivichaivejvivat vs. Chularat Hospital Public | Srivichaivejvivat vs. Rajthanee 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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