Correlation Between Asia Green and Chularat Hospital

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

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

Diversification Opportunities for Asia Green and Chularat Hospital

0.18

Correlation Coefficient

Asia Green  Chularat Hospital

Average diversification

The 3 months correlation between Asia and Chularat is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Asia Green Energy 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 Asia Green 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 Asia Green Energy 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 Asia Green i.e., Asia Green and Chularat Hospital go up and down completely randomly.

Pair Corralation between Asia Green and Chularat Hospital

Assuming the 90 days trading horizon Asia Green Energy is expected to under-perform the Chularat Hospital. In addition to that, Asia Green is 1.12 times more volatile than Chularat Hospital Public. It trades about 0.0 of its total potential returns per unit of risk. Chularat Hospital Public is currently generating about 0.01 per unit of volatility. If you would invest  270.00  in Chularat Hospital Public on September 5, 2024 and sell it today you would earn a total of  0.00  from holding Chularat Hospital Public or generate 0.0% return on investment over 90 days.

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

Asia Green Energy  vs.  Chularat Hospital Public

Asia Green Energy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Asia Green Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Asia Green is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Chularat Hospital Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Chularat Hospital Public has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Pair Trading with Asia Green and Chularat Hospital

The main advantage of trading using opposite Asia Green and Chularat Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Green 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.

The idea behind Asia Green Energy and Chularat 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.