Correlation Between Ekachai Medical and Chularat Hospital
Can any of the company-specific risk be diversified away by investing in both Ekachai Medical and Chularat Hospital 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 Ekachai Medical and Chularat Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekachai Medical Care and Chularat Hospital Public, you can compare the effects of market volatilities on Ekachai Medical and Chularat Hospital 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 Ekachai Medical with a short position of Chularat Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekachai Medical and Chularat Hospital.
Diversification Opportunities for Ekachai Medical and Chularat Hospital
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ekachai and Chularat is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ekachai Medical Care and Chularat Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chularat Hospital Public and Ekachai Medical 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 Ekachai Medical Care are associated (or correlated) with Chularat Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chularat Hospital Public has no effect on the direction of Ekachai Medical i.e., Ekachai Medical and Chularat Hospital go up and down completely randomly.
Pair Corralation between Ekachai Medical and Chularat Hospital
Assuming the 90 days trading horizon Ekachai Medical Care is expected to generate 1.32 times more return on investment than Chularat Hospital. However, Ekachai Medical is 1.32 times more volatile than Chularat Hospital Public. It trades about 0.0 of its potential returns per unit of risk. Chularat Hospital Public is currently generating about -0.05 per unit of risk. If you would invest 775.00 in Ekachai Medical Care on February 2, 2024 and sell it today you would earn a total of 0.00 from holding Ekachai Medical Care or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ekachai Medical Care vs. Chularat Hospital Public
Performance |
Timeline |
Ekachai Medical Care |
Chularat Hospital Public |
Ekachai Medical and Chularat Hospital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ekachai Medical and Chularat Hospital
The main advantage of trading using opposite Ekachai Medical and Chularat Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekachai Medical position performs unexpectedly, Chularat Hospital 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 Chularat Hospital will offset losses from the drop in Chularat Hospital's long position.Ekachai Medical vs. CP ALL Public | Ekachai Medical vs. Airports of Thailand | Ekachai Medical vs. Kasikornbank Public | Ekachai Medical vs. PTT Public |
Chularat Hospital vs. CP ALL Public | Chularat Hospital vs. Airports of Thailand | Chularat Hospital vs. Kasikornbank Public | Chularat Hospital vs. PTT Public |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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