Correlation Between Bumrungrad Hospital and FORWARD AIR
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and FORWARD AIR 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 Bumrungrad Hospital and FORWARD AIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bumrungrad Hospital Public and FORWARD AIR P, you can compare the effects of market volatilities on Bumrungrad Hospital and FORWARD AIR 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 Bumrungrad Hospital with a short position of FORWARD AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and FORWARD AIR.
Diversification Opportunities for Bumrungrad Hospital and FORWARD AIR
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bumrungrad and FORWARD is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and FORWARD AIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORWARD AIR P and Bumrungrad Hospital 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 Bumrungrad Hospital Public are associated (or correlated) with FORWARD AIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FORWARD AIR P has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and FORWARD AIR go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and FORWARD AIR
Assuming the 90 days trading horizon Bumrungrad Hospital Public is expected to generate 0.91 times more return on investment than FORWARD AIR. However, Bumrungrad Hospital Public is 1.1 times less risky than FORWARD AIR. It trades about -0.06 of its potential returns per unit of risk. FORWARD AIR P is currently generating about -0.06 per unit of risk. If you would invest 575.00 in Bumrungrad Hospital Public on September 13, 2024 and sell it today you would lose (20.00) from holding Bumrungrad Hospital Public or give up 3.48% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bumrungrad Hospital Public vs. FORWARD AIR P
Performance |
Timeline |
Bumrungrad Hospital |
FORWARD AIR P |
Bumrungrad Hospital and FORWARD AIR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bumrungrad Hospital and FORWARD AIR
The main advantage of trading using opposite Bumrungrad Hospital and FORWARD AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital position performs unexpectedly, FORWARD AIR 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 FORWARD AIR will offset losses from the drop in FORWARD AIR's long position.Bumrungrad Hospital vs. Ramsay Health Care | Bumrungrad Hospital vs. Universal Health Services | Bumrungrad Hospital vs. Superior Plus Corp | Bumrungrad Hospital vs. SIVERS SEMICONDUCTORS AB |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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