Correlation Between Ladprao General and Mahachai Hospital
Can any of the company-specific risk be diversified away by investing in both Ladprao General and Mahachai Hospital 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 Ladprao General and Mahachai Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ladprao General Hospital and Mahachai Hospital Public, you can compare the effects of market volatilities on Ladprao General and Mahachai Hospital 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 Ladprao General with a short position of Mahachai Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ladprao General and Mahachai Hospital.
Diversification Opportunities for Ladprao General and Mahachai Hospital
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ladprao and Mahachai is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ladprao General Hospital and Mahachai Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahachai Hospital Public and Ladprao General 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 Ladprao General Hospital are associated (or correlated) with Mahachai Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahachai Hospital Public has no effect on the direction of Ladprao General i.e., Ladprao General and Mahachai Hospital go up and down completely randomly.
Pair Corralation between Ladprao General and Mahachai Hospital
Assuming the 90 days trading horizon Ladprao General Hospital is expected to generate 0.51 times more return on investment than Mahachai Hospital. However, Ladprao General Hospital is 1.97 times less risky than Mahachai Hospital. It trades about -0.11 of its potential returns per unit of risk. Mahachai Hospital Public is currently generating about -0.13 per unit of risk. If you would invest 465.00 in Ladprao General Hospital on September 13, 2024 and sell it today you would lose (25.00) from holding Ladprao General Hospital or give up 5.38% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Ladprao General Hospital vs. Mahachai Hospital Public
Performance |
Timeline |
Ladprao General Hospital |
Mahachai Hospital Public |
Ladprao General and Mahachai Hospital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ladprao General and Mahachai Hospital
The main advantage of trading using opposite Ladprao General and Mahachai Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ladprao General position performs unexpectedly, Mahachai Hospital 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 Mahachai Hospital will offset losses from the drop in Mahachai Hospital's long position.Ladprao General vs. Ekachai Medical Care | Ladprao General vs. Bangkok Chain Hospital | Ladprao General vs. Rajthanee Hospital Public | Ladprao General vs. Chularat Hospital Public |
Mahachai Hospital vs. Rajthanee Hospital Public | Mahachai Hospital vs. Chularat Hospital Public | Mahachai Hospital vs. Ekachai Medical Care | Mahachai Hospital vs. Bangkok Chain Hospital |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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