Correlation Between Wattanapat Hospital and CVS Health
Can any of the company-specific risk be diversified away by investing in both Wattanapat Hospital and CVS Health 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 Wattanapat Hospital and CVS Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wattanapat Hospital Trang and CVS Health Corp, you can compare the effects of market volatilities on Wattanapat Hospital and CVS Health 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 Wattanapat Hospital with a short position of CVS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wattanapat Hospital and CVS Health.
Diversification Opportunities for Wattanapat Hospital and CVS Health
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wattanapat and CVS is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Wattanapat Hospital Trang and CVS Health Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVS Health Corp and Wattanapat Hospital 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 Wattanapat Hospital Trang are associated (or correlated) with CVS Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVS Health Corp has no effect on the direction of Wattanapat Hospital i.e., Wattanapat Hospital and CVS Health go up and down completely randomly.
Pair Corralation between Wattanapat Hospital and CVS Health
Assuming the 90 days trading horizon Wattanapat Hospital Trang is expected to generate 2.06 times more return on investment than CVS Health. However, Wattanapat Hospital is 2.06 times more volatile than CVS Health Corp. It trades about 0.08 of its potential returns per unit of risk. CVS Health Corp is currently generating about -0.03 per unit of risk. If you would invest 280.00 in Wattanapat Hospital Trang on January 20, 2024 and sell it today you would earn a total of 545.00 from holding Wattanapat Hospital Trang or generate 194.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.77% |
| Values | Daily Returns |
Wattanapat Hospital Trang vs. CVS Health Corp
Performance |
| Timeline |
| Wattanapat Hospital Trang |
| CVS Health Corp |
Wattanapat Hospital and CVS Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wattanapat Hospital and CVS Health
The main advantage of trading using opposite Wattanapat Hospital and CVS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wattanapat Hospital position performs unexpectedly, CVS Health 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 CVS Health will offset losses from the drop in CVS Health's long position.| Wattanapat Hospital vs. Vibhavadi Medical Center | Wattanapat Hospital vs. Ladprao General Hospital | Wattanapat Hospital vs. Ekachai Medical Care | Wattanapat Hospital vs. Chularat Hospital Public |
| CVS Health vs. Certara | CVS Health vs. HealthStream | CVS Health vs. Evolent Health | CVS Health vs. Streamline Health Solutions |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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