Correlation Between Ladprao General and Ramkhamhaeng Hospital
Can any of the company-specific risk be diversified away by investing in both Ladprao General 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 Ladprao General and Ramkhamhaeng Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ladprao General Hospital and Ramkhamhaeng Hospital Public, you can compare the effects of market volatilities on Ladprao General 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 Ladprao General with a short position of Ramkhamhaeng Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ladprao General and Ramkhamhaeng Hospital.
Diversification Opportunities for Ladprao General and Ramkhamhaeng Hospital
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ladprao and Ramkhamhaeng is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ladprao General Hospital and Ramkhamhaeng Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ramkhamhaeng Hospital and Ladprao General 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 Ladprao General Hospital 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 Ladprao General i.e., Ladprao General and Ramkhamhaeng Hospital go up and down completely randomly.
Pair Corralation between Ladprao General and Ramkhamhaeng Hospital
Assuming the 90 days trading horizon Ladprao General Hospital is expected to under-perform the Ramkhamhaeng Hospital. But the stock apears to be less risky and, when comparing its historical volatility, Ladprao General Hospital is 1.17 times less risky than Ramkhamhaeng Hospital. The stock trades about -0.14 of its potential returns per unit of risk. The Ramkhamhaeng Hospital Public is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2,345 in Ramkhamhaeng Hospital Public on August 31, 2024 and sell it today you would lose (15.00) from holding Ramkhamhaeng Hospital Public or give up 0.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ladprao General Hospital vs. Ramkhamhaeng Hospital Public
Performance |
| Timeline |
| Ladprao General Hospital |
| Ramkhamhaeng Hospital |
Ladprao General and Ramkhamhaeng Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ladprao General and Ramkhamhaeng Hospital
The main advantage of trading using opposite Ladprao General and Ramkhamhaeng Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ladprao General 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.| Ladprao General vs. Ekachai Medical Care | Ladprao General vs. Bangkok Chain Hospital | Ladprao General vs. Rajthanee Hospital Public | Ladprao General vs. Chularat Hospital Public |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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