Correlation Between KC Metalsheet and Ratchaphruek Hospital
Can any of the company-specific risk be diversified away by investing in both KC Metalsheet and Ratchaphruek 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 KC Metalsheet and Ratchaphruek Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KC Metalsheet Public and Ratchaphruek Hospital Public, you can compare the effects of market volatilities on KC Metalsheet and Ratchaphruek 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 KC Metalsheet with a short position of Ratchaphruek Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of KC Metalsheet and Ratchaphruek Hospital.
Diversification Opportunities for KC Metalsheet and Ratchaphruek Hospital
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KCM and Ratchaphruek is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding KC Metalsheet Public and Ratchaphruek Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratchaphruek Hospital and KC Metalsheet 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 KC Metalsheet Public are associated (or correlated) with Ratchaphruek Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratchaphruek Hospital has no effect on the direction of KC Metalsheet i.e., KC Metalsheet and Ratchaphruek Hospital go up and down completely randomly.
Pair Corralation between KC Metalsheet and Ratchaphruek Hospital
Assuming the 90 days trading horizon KC Metalsheet is expected to generate 1.01 times less return on investment than Ratchaphruek Hospital. In addition to that, KC Metalsheet is 1.0 times more volatile than Ratchaphruek Hospital Public. It trades about 0.1 of its total potential returns per unit of risk. Ratchaphruek Hospital Public is currently generating about 0.1 per unit of volatility. If you would invest 0.00 in Ratchaphruek Hospital Public on November 2, 2024 and sell it today you would earn a total of 545.00 from holding Ratchaphruek Hospital Public or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KC Metalsheet Public vs. Ratchaphruek Hospital Public
Performance |
| Timeline |
| KC Metalsheet Public |
| Ratchaphruek Hospital |
KC Metalsheet and Ratchaphruek Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KC Metalsheet and Ratchaphruek Hospital
The main advantage of trading using opposite KC Metalsheet and Ratchaphruek Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KC Metalsheet position performs unexpectedly, Ratchaphruek 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 Ratchaphruek Hospital will offset losses from the drop in Ratchaphruek Hospital's long position.| KC Metalsheet vs. Kingsmen CMTI Public | KC Metalsheet vs. Hydrotek Public | KC Metalsheet vs. Home Pottery Public | KC Metalsheet vs. The Erawan Group |
| Ratchaphruek Hospital vs. Bangkok Chain Hospital | Ratchaphruek Hospital vs. Nonthavej Hospital Public | Ratchaphruek Hospital vs. Bumrungrad Hospital PCL | Ratchaphruek Hospital vs. Vibhavadi Medical Center |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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