Correlation Between THONBURI HEALTHCARE and Mena Transport
Can any of the company-specific risk be diversified away by investing in both THONBURI HEALTHCARE and Mena Transport 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 THONBURI HEALTHCARE and Mena Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THONBURI HEALTHCARE GRO NVDR and Mena Transport Public, you can compare the effects of market volatilities on THONBURI HEALTHCARE and Mena Transport 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 THONBURI HEALTHCARE with a short position of Mena Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of THONBURI HEALTHCARE and Mena Transport.
Diversification Opportunities for THONBURI HEALTHCARE and Mena Transport
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between THONBURI and Mena is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding THONBURI HEALTHCARE GRO NVDR and Mena Transport Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mena Transport Public and THONBURI HEALTHCARE 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 THONBURI HEALTHCARE GRO NVDR are associated (or correlated) with Mena Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mena Transport Public has no effect on the direction of THONBURI HEALTHCARE i.e., THONBURI HEALTHCARE and Mena Transport go up and down completely randomly.
Pair Corralation between THONBURI HEALTHCARE and Mena Transport
Assuming the 90 days trading horizon THONBURI HEALTHCARE GRO NVDR is expected to under-perform the Mena Transport. In addition to that, THONBURI HEALTHCARE is 4.71 times more volatile than Mena Transport Public. It trades about -0.12 of its total potential returns per unit of risk. Mena Transport Public is currently generating about -0.08 per unit of volatility. If you would invest 125.00 in Mena Transport Public on October 10, 2024 and sell it today you would lose (15.00) from holding Mena Transport Public or give up 12.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
THONBURI HEALTHCARE GRO NVDR vs. Mena Transport Public
Performance |
Timeline |
THONBURI HEALTHCARE GRO |
Mena Transport Public |
THONBURI HEALTHCARE and Mena Transport Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with THONBURI HEALTHCARE and Mena Transport
The main advantage of trading using opposite THONBURI HEALTHCARE and Mena Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THONBURI HEALTHCARE position performs unexpectedly, Mena Transport 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 Mena Transport will offset losses from the drop in Mena Transport's long position.THONBURI HEALTHCARE vs. Bumrungrad Hospital PCL | THONBURI HEALTHCARE vs. Ramkhamhaeng Hospital Public | THONBURI HEALTHCARE vs. Thonburi Healthcare Grp | THONBURI HEALTHCARE vs. Bangkok Chain Hospital |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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