Correlation Between Intermedical Care and RS Public
Can any of the company-specific risk be diversified away by investing in both Intermedical Care and RS Public 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 Intermedical Care and RS Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intermedical Care and and RS Public, you can compare the effects of market volatilities on Intermedical Care and RS Public 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 Intermedical Care with a short position of RS Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermedical Care and RS Public.
Diversification Opportunities for Intermedical Care and RS Public
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intermedical and RS Public is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Intermedical Care and and RS Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RS Public and Intermedical Care 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 Intermedical Care and are associated (or correlated) with RS Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RS Public has no effect on the direction of Intermedical Care i.e., Intermedical Care and RS Public go up and down completely randomly.
Pair Corralation between Intermedical Care and RS Public
Assuming the 90 days trading horizon Intermedical Care and is expected to generate 16.4 times more return on investment than RS Public. However, Intermedical Care is 16.4 times more volatile than RS Public. It trades about 0.07 of its potential returns per unit of risk. RS Public is currently generating about -0.18 per unit of risk. If you would invest 645.00 in Intermedical Care and on October 25, 2024 and sell it today you would lose (195.00) from holding Intermedical Care and or give up 30.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermedical Care and vs. RS Public
Performance |
| Timeline |
| Intermedical Care |
| RS Public |
Intermedical Care and RS Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermedical Care and RS Public
The main advantage of trading using opposite Intermedical Care and RS Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermedical Care position performs unexpectedly, RS Public 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 RS Public will offset losses from the drop in RS Public's long position.| Intermedical Care vs. Inter Pharma Public | Intermedical Care vs. Ekachai Medical Care | Intermedical Care vs. Humanica Public | Intermedical Care vs. Bangkok Chain Hospital |
| RS Public vs. City Steel Public | RS Public vs. Tata Steel Public | RS Public vs. Siam Steel Service | RS Public vs. Intermedical Care and |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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