Correlation Between Chularat Hospital and Dental Public
Can any of the company-specific risk be diversified away by investing in both Chularat Hospital and Dental Public 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 Chularat Hospital and Dental Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chularat Hospital Public and Dental Public, you can compare the effects of market volatilities on Chularat Hospital and Dental Public 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 Chularat Hospital with a short position of Dental Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chularat Hospital and Dental Public.
Diversification Opportunities for Chularat Hospital and Dental Public
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chularat and Dental is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Chularat Hospital Public and Dental Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dental Public and Chularat 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 Chularat Hospital Public are associated (or correlated) with Dental Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dental Public has no effect on the direction of Chularat Hospital i.e., Chularat Hospital and Dental Public go up and down completely randomly.
Pair Corralation between Chularat Hospital and Dental Public
Assuming the 90 days trading horizon Chularat Hospital Public is expected to under-perform the Dental Public. In addition to that, Chularat Hospital is 1.22 times more volatile than Dental Public. It trades about -0.26 of its total potential returns per unit of risk. Dental Public is currently generating about -0.26 per unit of volatility. If you would invest 302.00 in Dental Public on December 30, 2024 and sell it today you would lose (76.00) from holding Dental Public or give up 25.17% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Chularat Hospital Public vs. Dental Public
Performance |
Timeline |
Chularat Hospital Public |
Dental Public |
Chularat Hospital and Dental Public Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chularat Hospital and Dental Public
The main advantage of trading using opposite Chularat Hospital and Dental Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chularat Hospital position performs unexpectedly, Dental Public 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 Dental Public will offset losses from the drop in Dental Public's long position.Chularat Hospital vs. Bangkok Dusit Medical | Chularat Hospital vs. Bangkok Chain Hospital | Chularat Hospital vs. Central Plaza Hotel |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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