Correlation Between Senseonics Holdings and Wattanapat Hospital
Can any of the company-specific risk be diversified away by investing in both Senseonics Holdings and Wattanapat 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 Senseonics Holdings and Wattanapat Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senseonics Holdings and Wattanapat Hospital Trang, you can compare the effects of market volatilities on Senseonics Holdings and Wattanapat 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 Senseonics Holdings with a short position of Wattanapat Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senseonics Holdings and Wattanapat Hospital.
Diversification Opportunities for Senseonics Holdings and Wattanapat Hospital
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Senseonics and Wattanapat is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Senseonics Holdings and Wattanapat Hospital Trang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wattanapat Hospital Trang and Senseonics Holdings 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 Senseonics Holdings are associated (or correlated) with Wattanapat Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wattanapat Hospital Trang has no effect on the direction of Senseonics Holdings i.e., Senseonics Holdings and Wattanapat Hospital go up and down completely randomly.
Pair Corralation between Senseonics Holdings and Wattanapat Hospital
Given the investment horizon of 90 days Senseonics Holdings is expected to under-perform the Wattanapat Hospital. In addition to that, Senseonics Holdings is 1.56 times more volatile than Wattanapat Hospital Trang. It trades about -0.03 of its total potential returns per unit of risk. Wattanapat Hospital Trang is currently generating about 0.1 per unit of volatility. If you would invest 389.00 in Wattanapat Hospital Trang on December 29, 2023 and sell it today you would earn a total of 466.00 from holding Wattanapat Hospital Trang or generate 119.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 97.24% |
Values | Daily Returns |
Senseonics Holdings vs. Wattanapat Hospital Trang
Performance |
Timeline |
Senseonics Holdings |
Wattanapat Hospital Trang |
Senseonics Holdings and Wattanapat Hospital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Senseonics Holdings and Wattanapat Hospital
The main advantage of trading using opposite Senseonics Holdings and Wattanapat Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senseonics Holdings position performs unexpectedly, Wattanapat 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 Wattanapat Hospital will offset losses from the drop in Wattanapat Hospital's long position.Senseonics Holdings vs. Cigna Corp | Senseonics Holdings vs. Definitive Healthcare Corp | Senseonics Holdings vs. Guardant Health | Senseonics Holdings vs. Laboratory |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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