Correlation Between Chularat Hospital and Communication System

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

Diversification Opportunities for Chularat Hospital and Communication System

0.9

Correlation Coefficient

Chularat Hospital  Communication System

Almost no diversification

The 3 months correlation between Chularat and Communication is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Chularat Hospital Public and Communication System Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Communication System 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 Communication System. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Communication System has no effect on the direction of Chularat Hospital i.e., Chularat Hospital and Communication System go up and down completely randomly.

Pair Corralation between Chularat Hospital and Communication System

Assuming the 90 days trading horizon Chularat Hospital Public is expected to under-perform the Communication System. In addition to that, Chularat Hospital is 1.32 times more volatile than Communication System Solution. It trades about -0.14 of its total potential returns per unit of risk. Communication System Solution is currently generating about -0.14 per unit of volatility. If you would invest  97.00  in Communication System Solution on December 2, 2024 and sell it today you would lose (14.00) from holding Communication System Solution or give up 14.43% of portfolio value over 90 days.

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

Chularat Hospital Public  vs.  Communication System Solution

Chularat Hospital Public

Risk-Adjusted Performance

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 conflicting performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Communication System

Risk-Adjusted Performance

Very Weak

Over the last 90 days Communication System Solution has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Chularat Hospital and Communication System

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

The idea behind Chularat Hospital Public and Communication System Solution 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.