Correlation Between Bangkok Dusit and Ramsay Health
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and Ramsay 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 Bangkok Dusit and Ramsay Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Dusit Medical and Ramsay Health Care, you can compare the effects of market volatilities on Bangkok Dusit and Ramsay 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 Bangkok Dusit with a short position of Ramsay Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and Ramsay Health.
Diversification Opportunities for Bangkok Dusit and Ramsay Health
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bangkok and Ramsay is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and Ramsay Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ramsay Health Care and Bangkok Dusit 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 Dusit Medical are associated (or correlated) with Ramsay Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ramsay Health Care has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and Ramsay Health go up and down completely randomly.
Pair Corralation between Bangkok Dusit and Ramsay Health
Assuming the 90 days horizon Bangkok Dusit Medical is expected to under-perform the Ramsay Health. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bangkok Dusit Medical is 1.43 times less risky than Ramsay Health. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Ramsay Health Care is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,424 in Ramsay Health Care on September 4, 2024 and sell it today you would earn a total of 9.00 from holding Ramsay Health Care or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 78.33% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. Ramsay Health Care
Performance |
| Timeline |
| Bangkok Dusit Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ramsay Health Care |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bangkok Dusit and Ramsay Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and Ramsay Health
The main advantage of trading using opposite Bangkok Dusit and Ramsay Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, Ramsay 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 Ramsay Health will offset losses from the drop in Ramsay Health's long position.| Bangkok Dusit vs. Fresenius SE Co | Bangkok Dusit vs. Life Healthcare Group | Bangkok Dusit vs. Select Medical Holdings | Bangkok Dusit vs. Ramsay Health Care |
| Ramsay Health vs. Fresenius SE Co | Ramsay Health vs. Life Healthcare Group | Ramsay Health vs. Select Medical Holdings | Ramsay Health vs. Ramsay Health Care |
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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