Correlation Between Medical Facilities and Bangkok Dusit

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

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

Diversification Opportunities for Medical Facilities and Bangkok Dusit

-0.74

Correlation Coefficient

Medical Facilities  Bangkok Dusit

Pay attention - limited upside

The 3 months correlation between Medical and Bangkok is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Medical Facilities and Bangkok Dusit Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Dusit Medical and Medical Facilities 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 Medical Facilities are associated (or correlated) with Bangkok Dusit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Dusit Medical has no effect on the direction of Medical Facilities i.e., Medical Facilities and Bangkok Dusit go up and down completely randomly.

Pair Corralation between Medical Facilities and Bangkok Dusit

Assuming the 90 days horizon Medical Facilities is expected to generate 1.94 times more return on investment than Bangkok Dusit. However, Medical Facilities is 1.94 times more volatile than Bangkok Dusit Medical. It trades about 0.07 of its potential returns per unit of risk. Bangkok Dusit Medical is currently generating about 0.0 per unit of risk. If you would invest  546.00  in Medical Facilities on September 24, 2024 and sell it today you would earn a total of  544.00  from holding Medical Facilities or generate 99.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	69.78%
Values	Daily Returns

Medical Facilities  vs.  Bangkok Dusit Medical

Medical Facilities

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Medical Facilities are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Medical Facilities may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Bangkok Dusit Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bangkok Dusit Medical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Bangkok Dusit is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Medical Facilities and Bangkok Dusit

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

The idea behind Medical Facilities and Bangkok Dusit Medical 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..