Correlation Between Bumrungrad Hospital and Ramkhamhaeng Hospital
Can any of the company-specific risk be diversified away by investing in both Bumrungrad Hospital 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 Bumrungrad Hospital and Ramkhamhaeng Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bumrungrad Hospital Public and Ramkhamhaeng Hospital Public, you can compare the effects of market volatilities on Bumrungrad Hospital 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 Bumrungrad Hospital with a short position of Ramkhamhaeng Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bumrungrad Hospital and Ramkhamhaeng Hospital.
Diversification Opportunities for Bumrungrad Hospital and Ramkhamhaeng Hospital
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bumrungrad and Ramkhamhaeng is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bumrungrad Hospital Public and Ramkhamhaeng Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ramkhamhaeng Hospital and Bumrungrad 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 Bumrungrad Hospital Public 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 Bumrungrad Hospital i.e., Bumrungrad Hospital and Ramkhamhaeng Hospital go up and down completely randomly.
Pair Corralation between Bumrungrad Hospital and Ramkhamhaeng Hospital
Assuming the 90 days horizon Bumrungrad Hospital Public is expected to generate 1.15 times more return on investment than Ramkhamhaeng Hospital. However, Bumrungrad Hospital is 1.15 times more volatile than Ramkhamhaeng Hospital Public. It trades about -0.13 of its potential returns per unit of risk. Ramkhamhaeng Hospital Public is currently generating about -0.18 per unit of risk. If you would invest 24,500 in Bumrungrad Hospital Public on August 25, 2024 and sell it today you would lose (3,900) from holding Bumrungrad Hospital Public or give up 15.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bumrungrad Hospital Public vs. Ramkhamhaeng Hospital Public
Performance |
| Timeline |
| Bumrungrad Hospital |
| Ramkhamhaeng Hospital |
Bumrungrad Hospital and Ramkhamhaeng Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bumrungrad Hospital and Ramkhamhaeng Hospital
The main advantage of trading using opposite Bumrungrad Hospital and Ramkhamhaeng Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bumrungrad Hospital 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.| Bumrungrad Hospital vs. Chularat Hospital Public | Bumrungrad Hospital vs. Ekachai Medical Care | Bumrungrad Hospital vs. Bangkok Chain Hospital | Bumrungrad Hospital vs. Srivichaivejvivat Public |
| Ramkhamhaeng Hospital vs. Chularat Hospital Public | Ramkhamhaeng Hospital vs. Ekachai Medical Care | Ramkhamhaeng Hospital vs. Bangkok Chain Hospital | Ramkhamhaeng Hospital vs. Srivichaivejvivat Public |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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