Correlation Between Lohakit Metal and Ramkhamhaeng Hospital
Can any of the company-specific risk be diversified away by investing in both Lohakit Metal 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 Lohakit Metal and Ramkhamhaeng Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lohakit Metal Public and Ramkhamhaeng Hospital Public, you can compare the effects of market volatilities on Lohakit Metal 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 Lohakit Metal with a short position of Ramkhamhaeng Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lohakit Metal and Ramkhamhaeng Hospital.
Diversification Opportunities for Lohakit Metal and Ramkhamhaeng Hospital
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lohakit and Ramkhamhaeng is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Lohakit Metal 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 Lohakit Metal 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 Lohakit Metal 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 Lohakit Metal i.e., Lohakit Metal and Ramkhamhaeng Hospital go up and down completely randomly.
Pair Corralation between Lohakit Metal and Ramkhamhaeng Hospital
Assuming the 90 days trading horizon Lohakit Metal Public is expected to generate 0.52 times more return on investment than Ramkhamhaeng Hospital. However, Lohakit Metal Public is 1.93 times less risky than Ramkhamhaeng Hospital. It trades about -0.03 of its potential returns per unit of risk. Ramkhamhaeng Hospital Public is currently generating about -0.17 per unit of risk. If you would invest 359.00 in Lohakit Metal Public on November 2, 2024 and sell it today you would lose (9.00) from holding Lohakit Metal Public or give up 2.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lohakit Metal Public vs. Ramkhamhaeng Hospital Public
Performance |
| Timeline |
| Lohakit Metal Public |
| Ramkhamhaeng Hospital |
Lohakit Metal and Ramkhamhaeng Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lohakit Metal and Ramkhamhaeng Hospital
The main advantage of trading using opposite Lohakit Metal and Ramkhamhaeng Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lohakit Metal 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.| Lohakit Metal vs. MCS Steel Public | Lohakit Metal vs. Asia Plus Group | Lohakit Metal vs. Lalin Property Public | Lohakit Metal vs. Lam Soon Public |
| Ramkhamhaeng Hospital vs. Bangkok Chain Hospital | Ramkhamhaeng Hospital vs. Nonthavej Hospital Public | Ramkhamhaeng Hospital vs. Bumrungrad Hospital PCL | Ramkhamhaeng 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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