Correlation Between Chiang Mai and THONBURI HEALTHCARE

Can any of the company-specific risk be diversified away by investing in both Chiang Mai and THONBURI HEALTHCARE 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 Chiang Mai and THONBURI HEALTHCARE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Chiang Mai Ram and THONBURI HEALTHCARE GRO NVDR, you can compare the effects of market volatilities on Chiang Mai and THONBURI HEALTHCARE 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 Chiang Mai with a short position of THONBURI HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chiang Mai and THONBURI HEALTHCARE.

Diversification Opportunities for Chiang Mai and THONBURI HEALTHCARE

-0.7

Correlation Coefficient

Chiang Mai  THONBURI HEALTHCARE

Excellent diversification

The 3 months correlation between Chiang and THONBURI is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Chiang Mai Ram and THONBURI HEALTHCARE GRO NVDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THONBURI HEALTHCARE GRO and Chiang Mai 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 Chiang Mai Ram are associated (or correlated) with THONBURI HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THONBURI HEALTHCARE GRO has no effect on the direction of Chiang Mai i.e., Chiang Mai and THONBURI HEALTHCARE go up and down completely randomly.

Pair Corralation between Chiang Mai and THONBURI HEALTHCARE

Assuming the 90 days trading horizon Chiang Mai Ram is expected to generate 1.07 times more return on investment than THONBURI HEALTHCARE. However, Chiang Mai is 1.07 times more volatile than THONBURI HEALTHCARE GRO NVDR. It trades about 0.14 of its potential returns per unit of risk. THONBURI HEALTHCARE GRO NVDR is currently generating about -0.03 per unit of risk. If you would invest  123.00  in Chiang Mai Ram on April 24, 2025 and sell it today you would earn a total of  19.00  from holding Chiang Mai Ram or generate 15.45% return on investment over 90 days.

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

Chiang Mai Ram  vs.  THONBURI HEALTHCARE GRO NVDR

Chiang Mai Ram

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Chiang Mai Ram are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Chiang Mai disclosed solid returns over the last few months and may actually be approaching a breakup point.

THONBURI HEALTHCARE GRO

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Chiang Mai and THONBURI HEALTHCARE

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

The idea behind Chiang Mai Ram and THONBURI HEALTHCARE GRO NVDR 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.