Correlation Between Bumrungrad Hospital and FANDIFI TECHNOLOGY

Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY P, you can compare the effects of market volatilities on Bumrungrad Hospital and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and FANDIFI TECHNOLOGY.

Diversification Opportunities for Bumrungrad Hospital and FANDIFI TECHNOLOGY

0.0

Correlation Coefficient

Bumrungrad Hospital  FANDIFI TECHNOLOGY

Pay attention - limited upside

The 3 months correlation between Bumrungrad and FANDIFI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and FANDIFI TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FANDIFI TECHNOLOGY has no effect on the direction of Bumrungrad Hospital i.e., Bumrungrad Hospital and FANDIFI TECHNOLOGY go up and down completely randomly.

Pair Corralation between Bumrungrad Hospital and FANDIFI TECHNOLOGY

Assuming the 90 days trading horizon Bumrungrad Hospital is expected to generate 2.15 times less return on investment than FANDIFI TECHNOLOGY. But when comparing it to its historical volatility, Bumrungrad Hospital Public is 3.71 times less risky than FANDIFI TECHNOLOGY. It trades about 0.08 of its potential returns per unit of risk. FANDIFI TECHNOLOGY P is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  3.55  in FANDIFI TECHNOLOGY P on October 4, 2024 and sell it today you would lose (3.50) from holding FANDIFI TECHNOLOGY P or give up 98.59% of portfolio value over 90 days.

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

Bumrungrad Hospital Public  vs.  FANDIFI TECHNOLOGY P

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.

FANDIFI TECHNOLOGY

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FANDIFI TECHNOLOGY P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, FANDIFI TECHNOLOGY is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Bumrungrad Hospital and FANDIFI TECHNOLOGY

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

The idea behind Bumrungrad Hospital Public and FANDIFI TECHNOLOGY P 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..