Correlation Between Chularat Hospital and SCB X

Can any of the company-specific risk be diversified away by investing in both Chularat Hospital and SCB X 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 Chularat Hospital and SCB X into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Chularat Hospital Public and SCB X Public, you can compare the effects of market volatilities on Chularat Hospital and SCB X 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 Chularat Hospital with a short position of SCB X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chularat Hospital and SCB X.

Diversification Opportunities for Chularat Hospital and SCB X

-0.13

Correlation Coefficient

Chularat Hospital  SCB X

Good diversification

The 3 months correlation between Chularat and SCB is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Chularat Hospital Public and SCB X Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCB X Public and Chularat 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 Chularat Hospital Public are associated (or correlated) with SCB X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCB X Public has no effect on the direction of Chularat Hospital i.e., Chularat Hospital and SCB X go up and down completely randomly.

Pair Corralation between Chularat Hospital and SCB X

Assuming the 90 days trading horizon Chularat Hospital Public is expected to under-perform the SCB X. In addition to that, Chularat Hospital is 2.29 times more volatile than SCB X Public. It trades about -0.03 of its total potential returns per unit of risk. SCB X Public is currently generating about 0.08 per unit of volatility. If you would invest  11,650  in SCB X Public on April 24, 2025 and sell it today you would earn a total of  500.00  from holding SCB X Public or generate 4.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.31%
Values	Daily Returns

Chularat Hospital Public  vs.  SCB X Public

Chularat Hospital Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Chularat Hospital Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Chularat Hospital is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

SCB X Public

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SCB X Public are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental drivers, SCB X is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Chularat Hospital and SCB X

The main advantage of trading using opposite Chularat Hospital and SCB X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chularat Hospital position performs unexpectedly, SCB X 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 SCB X will offset losses from the drop in SCB X's long position.

The idea behind Chularat Hospital Public and SCB X Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.