Correlation Between Ekachai Medical and Intermedical Care

Can any of the company-specific risk be diversified away by investing in both Ekachai Medical and Intermedical Care 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 Ekachai Medical and Intermedical Care into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ekachai Medical Care and Intermedical Care and, you can compare the effects of market volatilities on Ekachai Medical and Intermedical Care 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 Ekachai Medical with a short position of Intermedical Care. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekachai Medical and Intermedical Care.

Diversification Opportunities for Ekachai Medical and Intermedical Care

0.71

Correlation Coefficient

Ekachai Medical  Intermedical Care

Poor diversification

The 3 months correlation between Ekachai and Intermedical is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ekachai Medical Care and Intermedical Care and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermedical Care and Ekachai Medical 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 Ekachai Medical Care are associated (or correlated) with Intermedical Care. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermedical Care has no effect on the direction of Ekachai Medical i.e., Ekachai Medical and Intermedical Care go up and down completely randomly.

Pair Corralation between Ekachai Medical and Intermedical Care

Assuming the 90 days trading horizon Ekachai Medical Care is expected to under-perform the Intermedical Care. But the stock apears to be less risky and, when comparing its historical volatility, Ekachai Medical Care is 78.46 times less risky than Intermedical Care. The stock trades about -0.02 of its potential returns per unit of risk. The Intermedical Care and is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  600.00  in Intermedical Care and on October 4, 2024 and sell it today you would lose (124.00) from holding Intermedical Care and or give up 20.67% of portfolio value over 90 days.

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

Ekachai Medical Care  vs.  Intermedical Care and

Ekachai Medical Care

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ekachai Medical Care has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical indicators, Ekachai Medical is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Intermedical Care

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intermedical Care and has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's technical 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 Ekachai Medical and Intermedical Care

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

The idea behind Ekachai Medical Care and Intermedical Care and 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.