Correlation Between BPS TECHNOLOGY and Patrangsit Healthcare

Can any of the company-specific risk be diversified away by investing in both BPS TECHNOLOGY and Patrangsit 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 BPS TECHNOLOGY and Patrangsit Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BPS TECHNOLOGY PUBLIC and Patrangsit Healthcare Group, you can compare the effects of market volatilities on BPS TECHNOLOGY and Patrangsit 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 BPS TECHNOLOGY with a short position of Patrangsit Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of BPS TECHNOLOGY and Patrangsit Healthcare.

Diversification Opportunities for BPS TECHNOLOGY and Patrangsit Healthcare

-0.36

Correlation Coefficient

BPS TECHNOLOGY  Patrangsit Healthcare

Very good diversification

The 3 months correlation between BPS and Patrangsit is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding BPS TECHNOLOGY PUBLIC and Patrangsit Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patrangsit Healthcare and BPS TECHNOLOGY 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 BPS TECHNOLOGY PUBLIC are associated (or correlated) with Patrangsit Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patrangsit Healthcare has no effect on the direction of BPS TECHNOLOGY i.e., BPS TECHNOLOGY and Patrangsit Healthcare go up and down completely randomly.

Pair Corralation between BPS TECHNOLOGY and Patrangsit Healthcare

Assuming the 90 days trading horizon BPS TECHNOLOGY PUBLIC is expected to generate 1.83 times more return on investment than Patrangsit Healthcare. However, BPS TECHNOLOGY is 1.83 times more volatile than Patrangsit Healthcare Group. It trades about 0.08 of its potential returns per unit of risk. Patrangsit Healthcare Group is currently generating about -0.13 per unit of risk. If you would invest  50.00  in BPS TECHNOLOGY PUBLIC on December 29, 2024 and sell it today you would earn a total of  6.00  from holding BPS TECHNOLOGY PUBLIC or generate 12.0% return on investment over 90 days.

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

BPS TECHNOLOGY PUBLIC  vs.  Patrangsit Healthcare Group

BPS TECHNOLOGY PUBLIC

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BPS TECHNOLOGY PUBLIC are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, BPS TECHNOLOGY disclosed solid returns over the last few months and may actually be approaching a breakup point.

Patrangsit Healthcare

Risk-Adjusted Performance

Very Weak

Over the last 90 days Patrangsit Healthcare Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's technical and fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with BPS TECHNOLOGY and Patrangsit Healthcare

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

The idea behind BPS TECHNOLOGY PUBLIC and Patrangsit Healthcare Group 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.