Correlation Between VanEck Gold and Wattanapat Hospital
Can any of the company-specific risk be diversified away by investing in both VanEck Gold and Wattanapat 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 VanEck Gold and Wattanapat Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Gold Miners and Wattanapat Hospital Trang, you can compare the effects of market volatilities on VanEck Gold and Wattanapat 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 VanEck Gold with a short position of Wattanapat Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Gold and Wattanapat Hospital.
Diversification Opportunities for VanEck Gold and Wattanapat Hospital
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VanEck and Wattanapat is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Gold Miners and Wattanapat Hospital Trang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wattanapat Hospital Trang and VanEck Gold 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 VanEck Gold Miners are associated (or correlated) with Wattanapat Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wattanapat Hospital Trang has no effect on the direction of VanEck Gold i.e., VanEck Gold and Wattanapat Hospital go up and down completely randomly.
Pair Corralation between VanEck Gold and Wattanapat Hospital
Considering the 90-day investment horizon VanEck Gold Miners is expected to generate 0.86 times more return on investment than Wattanapat Hospital. However, VanEck Gold Miners is 1.17 times less risky than Wattanapat Hospital. It trades about 0.25 of its potential returns per unit of risk. Wattanapat Hospital Trang is currently generating about 0.09 per unit of risk. If you would invest 3,096 in VanEck Gold Miners on January 27, 2024 and sell it today you would earn a total of 337.00 from holding VanEck Gold Miners or generate 10.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 82.61% |
Values | Daily Returns |
VanEck Gold Miners vs. Wattanapat Hospital Trang
Performance |
Timeline |
VanEck Gold Miners |
Wattanapat Hospital Trang |
VanEck Gold and Wattanapat Hospital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with VanEck Gold and Wattanapat Hospital
The main advantage of trading using opposite VanEck Gold and Wattanapat Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Gold position performs unexpectedly, Wattanapat 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 Wattanapat Hospital will offset losses from the drop in Wattanapat Hospital's long position.VanEck Gold vs. VanEck Junior Gold | VanEck Gold vs. iShares Silver Trust | VanEck Gold vs. SPDR Gold Shares | VanEck Gold vs. Newmont Goldcorp Corp |
Wattanapat Hospital vs. Vibhavadi Medical Center | Wattanapat Hospital vs. Ladprao General Hospital | Wattanapat Hospital vs. Ekachai Medical Care | Wattanapat Hospital vs. Chularat Hospital 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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