Correlation Between TOREX SEMICONDUCTOR and Bumrungrad Hospital

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

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

Diversification Opportunities for TOREX SEMICONDUCTOR and Bumrungrad Hospital

0.88

Correlation Coefficient

TOREX SEMICONDUCTOR  Bumrungrad Hospital

Very poor diversification

The 3 months correlation between TOREX and Bumrungrad is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding TOREX SEMICONDUCTOR LTD and Bumrungrad Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bumrungrad Hospital and TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR LTD are associated (or correlated) with Bumrungrad Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bumrungrad Hospital has no effect on the direction of TOREX SEMICONDUCTOR i.e., TOREX SEMICONDUCTOR and Bumrungrad Hospital go up and down completely randomly.

Pair Corralation between TOREX SEMICONDUCTOR and Bumrungrad Hospital

Assuming the 90 days horizon TOREX SEMICONDUCTOR LTD is expected to generate 0.76 times more return on investment than Bumrungrad Hospital. However, TOREX SEMICONDUCTOR LTD is 1.31 times less risky than Bumrungrad Hospital. It trades about -0.2 of its potential returns per unit of risk. Bumrungrad Hospital Public is currently generating about -0.21 per unit of risk. If you would invest  880.00  in TOREX SEMICONDUCTOR LTD on October 6, 2024 and sell it today you would lose (140.00) from holding TOREX SEMICONDUCTOR LTD or give up 15.91% of portfolio value over 90 days.

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

TOREX SEMICONDUCTOR LTD  vs.  Bumrungrad Hospital Public

TOREX SEMICONDUCTOR LTD

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TOREX SEMICONDUCTOR LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Bumrungrad Hospital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bumrungrad Hospital Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with TOREX SEMICONDUCTOR and Bumrungrad Hospital

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

The idea behind TOREX SEMICONDUCTOR LTD and Bumrungrad Hospital 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.