Correlation Between Chularat Hospital and Vibhavadi Medical

Can any of the company-specific risk be diversified away by investing in both Chularat Hospital and Vibhavadi Medical 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 Vibhavadi Medical 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 Vibhavadi Medical Center, you can compare the effects of market volatilities on Chularat Hospital and Vibhavadi Medical 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 Vibhavadi Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chularat Hospital and Vibhavadi Medical.

Diversification Opportunities for Chularat Hospital and Vibhavadi Medical

0.69

Correlation Coefficient

Chularat Hospital  Vibhavadi Medical

Poor diversification

The 3 months correlation between Chularat and Vibhavadi is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Chularat Hospital Public and Vibhavadi Medical Center in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vibhavadi Medical Center 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 Vibhavadi Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vibhavadi Medical Center has no effect on the direction of Chularat Hospital i.e., Chularat Hospital and Vibhavadi Medical go up and down completely randomly.

Pair Corralation between Chularat Hospital and Vibhavadi Medical

Assuming the 90 days trading horizon Chularat Hospital Public is expected to generate 2.52 times more return on investment than Vibhavadi Medical. However, Chularat Hospital is 2.52 times more volatile than Vibhavadi Medical Center. It trades about 0.03 of its potential returns per unit of risk. Vibhavadi Medical Center is currently generating about 0.01 per unit of risk. If you would invest  169.00  in Chularat Hospital Public on April 24, 2025 and sell it today you would earn a total of  3.00  from holding Chularat Hospital Public or generate 1.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Chularat Hospital Public  vs.  Vibhavadi Medical Center

Chularat Hospital Public

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Chularat Hospital Public are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent technical and fundamental indicators, Chularat Hospital is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Vibhavadi Medical Center

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Chularat Hospital and Vibhavadi Medical

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

The idea behind Chularat Hospital Public and Vibhavadi Medical Center 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 Anywhere module to track or share privately all of your investments from the convenience of any device.