Correlation Between Bangkok Chain and Ramkhamhaeng Hospital
Can any of the company-specific risk be diversified away by investing in both Bangkok Chain and Ramkhamhaeng 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 Bangkok Chain and Ramkhamhaeng Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Chain Hospital and Ramkhamhaeng Hospital Public, you can compare the effects of market volatilities on Bangkok Chain and Ramkhamhaeng 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 Bangkok Chain with a short position of Ramkhamhaeng Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Chain and Ramkhamhaeng Hospital.
Diversification Opportunities for Bangkok Chain and Ramkhamhaeng Hospital
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bangkok and Ramkhamhaeng is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Chain Hospital and Ramkhamhaeng Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ramkhamhaeng Hospital and Bangkok Chain 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 Bangkok Chain Hospital are associated (or correlated) with Ramkhamhaeng Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ramkhamhaeng Hospital has no effect on the direction of Bangkok Chain i.e., Bangkok Chain and Ramkhamhaeng Hospital go up and down completely randomly.
Pair Corralation between Bangkok Chain and Ramkhamhaeng Hospital
Assuming the 90 days trading horizon Bangkok Chain Hospital is expected to under-perform the Ramkhamhaeng Hospital. In addition to that, Bangkok Chain is 1.74 times more volatile than Ramkhamhaeng Hospital Public. It trades about -0.34 of its total potential returns per unit of risk. Ramkhamhaeng Hospital Public is currently generating about -0.09 per unit of volatility. If you would invest 2,365 in Ramkhamhaeng Hospital Public on August 29, 2024 and sell it today you would lose (45.00) from holding Ramkhamhaeng Hospital Public or give up 1.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Chain Hospital vs. Ramkhamhaeng Hospital Public
Performance |
| Timeline |
| Bangkok Chain Hospital |
| Ramkhamhaeng Hospital |
Bangkok Chain and Ramkhamhaeng Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Chain and Ramkhamhaeng Hospital
The main advantage of trading using opposite Bangkok Chain and Ramkhamhaeng Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Chain position performs unexpectedly, Ramkhamhaeng 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 Ramkhamhaeng Hospital will offset losses from the drop in Ramkhamhaeng Hospital's long position.| Bangkok Chain vs. Bangkok Dusit Medical | Bangkok Chain vs. Chularat Hospital Public | Bangkok Chain vs. Bumrungrad Hospital Public | Bangkok Chain vs. Advanced Info Service |
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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