Correlation Between Wattanapat Hospital and Dexon Technology
Can any of the company-specific risk be diversified away by investing in both Wattanapat Hospital and Dexon Technology 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 Wattanapat Hospital and Dexon Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wattanapat Hospital Trang and Dexon Technology PCL, you can compare the effects of market volatilities on Wattanapat Hospital and Dexon Technology 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 Wattanapat Hospital with a short position of Dexon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wattanapat Hospital and Dexon Technology.
Diversification Opportunities for Wattanapat Hospital and Dexon Technology
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wattanapat and Dexon is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Wattanapat Hospital Trang and Dexon Technology PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dexon Technology PCL and Wattanapat Hospital 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 Wattanapat Hospital Trang are associated (or correlated) with Dexon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dexon Technology PCL has no effect on the direction of Wattanapat Hospital i.e., Wattanapat Hospital and Dexon Technology go up and down completely randomly.
Pair Corralation between Wattanapat Hospital and Dexon Technology
Assuming the 90 days trading horizon Wattanapat Hospital Trang is expected to under-perform the Dexon Technology. But the stock apears to be less risky and, when comparing its historical volatility, Wattanapat Hospital Trang is 1.73 times less risky than Dexon Technology. The stock trades about -0.03 of its potential returns per unit of risk. The Dexon Technology PCL is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 150.00 in Dexon Technology PCL on October 28, 2024 and sell it today you would earn a total of 4.00 from holding Dexon Technology PCL or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wattanapat Hospital Trang vs. Dexon Technology PCL
Performance |
| Timeline |
| Wattanapat Hospital Trang |
| Dexon Technology PCL |
Wattanapat Hospital and Dexon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wattanapat Hospital and Dexon Technology
The main advantage of trading using opposite Wattanapat Hospital and Dexon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wattanapat Hospital position performs unexpectedly, Dexon Technology 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 Dexon Technology will offset losses from the drop in Dexon Technology's long position.| Wattanapat Hospital vs. Chularat Hospital Public | Wattanapat Hospital vs. Bangkok Chain Hospital | Wattanapat Hospital vs. Ekachai Medical Care | Wattanapat Hospital vs. Vibhavadi Medical Center |
| Dexon Technology vs. PTT OIL RETAIL | Dexon Technology vs. Tanachira Retail | Dexon Technology vs. Kasikornbank Public | Dexon Technology vs. TISCO Financial 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 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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