Correlation Between WICE Logistics and Chularat Hospital
Can any of the company-specific risk be diversified away by investing in both WICE Logistics and Chularat Hospital 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 WICE Logistics and Chularat Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WICE Logistics PCL and Chularat Hospital Public, you can compare the effects of market volatilities on WICE Logistics and Chularat Hospital 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 WICE Logistics with a short position of Chularat Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of WICE Logistics and Chularat Hospital.
Diversification Opportunities for WICE Logistics and Chularat Hospital
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WICE and Chularat is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding WICE Logistics PCL and Chularat Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chularat Hospital Public and WICE Logistics 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 WICE Logistics PCL are associated (or correlated) with Chularat Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chularat Hospital Public has no effect on the direction of WICE Logistics i.e., WICE Logistics and Chularat Hospital go up and down completely randomly.
Pair Corralation between WICE Logistics and Chularat Hospital
Assuming the 90 days trading horizon WICE Logistics PCL is expected to under-perform the Chularat Hospital. But the stock apears to be less risky and, when comparing its historical volatility, WICE Logistics PCL is 1.85 times less risky than Chularat Hospital. The stock trades about -0.53 of its potential returns per unit of risk. The Chularat Hospital Public is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 228.00 in Chularat Hospital Public on November 27, 2024 and sell it today you would lose (4.00) from holding Chularat Hospital Public or give up 1.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WICE Logistics PCL vs. Chularat Hospital Public
Performance |
| Timeline |
| WICE Logistics PCL |
| Chularat Hospital Public |
WICE Logistics and Chularat Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WICE Logistics and Chularat Hospital
The main advantage of trading using opposite WICE Logistics and Chularat Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WICE Logistics position performs unexpectedly, Chularat Hospital 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 Chularat Hospital will offset losses from the drop in Chularat Hospital's long position.| WICE Logistics vs. Chularat Hospital Public | WICE Logistics vs. Triple i Logistics | WICE Logistics vs. VGI Public | WICE Logistics vs. Thai Union Group |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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