Correlation Between Wattanapat Hospital and Sikarin Public
Can any of the company-specific risk be diversified away by investing in both Wattanapat Hospital and Sikarin Public 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 Sikarin Public 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 Sikarin Public, you can compare the effects of market volatilities on Wattanapat Hospital and Sikarin Public 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 Sikarin Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wattanapat Hospital and Sikarin Public.
Diversification Opportunities for Wattanapat Hospital and Sikarin Public
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wattanapat and Sikarin is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Wattanapat Hospital Trang and Sikarin Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sikarin Public 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 Sikarin Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sikarin Public has no effect on the direction of Wattanapat Hospital i.e., Wattanapat Hospital and Sikarin Public go up and down completely randomly.
Pair Corralation between Wattanapat Hospital and Sikarin Public
Assuming the 90 days trading horizon Wattanapat Hospital Trang is expected to generate 28.06 times more return on investment than Sikarin Public. However, Wattanapat Hospital is 28.06 times more volatile than Sikarin Public. It trades about 0.05 of its potential returns per unit of risk. Sikarin Public is currently generating about -0.04 per unit of risk. If you would invest 369.00 in Wattanapat Hospital Trang on August 28, 2024 and sell it today you would earn a total of 591.00 from holding Wattanapat Hospital Trang or generate 160.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wattanapat Hospital Trang vs. Sikarin Public
Performance |
| Timeline |
| Wattanapat Hospital Trang |
| Sikarin Public |
Wattanapat Hospital and Sikarin Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wattanapat Hospital and Sikarin Public
The main advantage of trading using opposite Wattanapat Hospital and Sikarin Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wattanapat Hospital position performs unexpectedly, Sikarin Public 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 Sikarin Public will offset losses from the drop in Sikarin Public's long position.| Wattanapat Hospital vs. Vibhavadi Medical Center | Wattanapat Hospital vs. Ladprao General Hospital | Wattanapat Hospital vs. Ekachai Medical Care | Wattanapat Hospital vs. Chularat Hospital Public |
| Sikarin Public vs. Principal Capital Public | Sikarin Public vs. Ramkhamhaeng Hospital Public | Sikarin Public vs. Nonthavej Hospital Public | Sikarin Public vs. Ekachai Medical Care |
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 Stocks Directory module to find actively traded stocks across global markets.
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