Correlation Between Sikarin Public and Bangkok Chain

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Can any of the company-specific risk be diversified away by investing in both Sikarin Public and Bangkok Chain 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 Sikarin Public and Bangkok Chain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sikarin Public and Bangkok Chain Hospital, you can compare the effects of market volatilities on Sikarin Public and Bangkok Chain 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 Sikarin Public with a short position of Bangkok Chain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sikarin Public and Bangkok Chain.

Diversification Opportunities for Sikarin Public and Bangkok Chain

SikarinBangkokDiversified AwaySikarinBangkokDiversified Away100%
0.55
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Sikarin and Bangkok is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sikarin Public and Bangkok Chain Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Chain Hospital and Sikarin Public 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 Sikarin Public are associated (or correlated) with Bangkok Chain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Chain Hospital has no effect on the direction of Sikarin Public i.e., Sikarin Public and Bangkok Chain go up and down completely randomly.

Pair Corralation between Sikarin Public and Bangkok Chain

Assuming the 90 days trading horizon Sikarin Public is expected to under-perform the Bangkok Chain. But the stock apears to be less risky and, when comparing its historical volatility, Sikarin Public is 1.48 times less risky than Bangkok Chain. The stock trades about -0.02 of its potential returns per unit of risk. The Bangkok Chain Hospital is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  1,854  in Bangkok Chain Hospital on November 30, 2024 and sell it today you would lose (284.00) from holding Bangkok Chain Hospital or give up 15.32% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy99.79%
ValuesDaily Returns

Sikarin Public  vs.  Bangkok Chain Hospital

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -15-10-505101520
JavaScript chart by amCharts 3.21.15SKR BCH
       Timeline  
Sikarin Public 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Sikarin Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in March 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb88.599.5
Bangkok Chain Hospital 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Bangkok Chain Hospital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical indicators, Bangkok Chain is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb13.51414.51515.51616.51717.5

Sikarin Public and Bangkok Chain Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.32-1.8-1.28-0.76-0.240.220.741.261.782.3 0.050.100.150.20
JavaScript chart by amCharts 3.21.15SKR BCH
       Returns  

Pair Trading with Sikarin Public and Bangkok Chain

The main advantage of trading using opposite Sikarin Public and Bangkok Chain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sikarin Public position performs unexpectedly, Bangkok Chain 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 Bangkok Chain will offset losses from the drop in Bangkok Chain's long position.
The idea behind Sikarin Public and Bangkok Chain Hospital 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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