Correlation Between Mahachai Hospital and Rajthanee Hospital
Can any of the company-specific risk be diversified away by investing in both Mahachai Hospital and Rajthanee 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 Mahachai Hospital and Rajthanee Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mahachai Hospital Public and Rajthanee Hospital Public, you can compare the effects of market volatilities on Mahachai Hospital and Rajthanee 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 Mahachai Hospital with a short position of Rajthanee Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahachai Hospital and Rajthanee Hospital.
Diversification Opportunities for Mahachai Hospital and Rajthanee Hospital
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mahachai and Rajthanee is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Mahachai Hospital Public and Rajthanee Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rajthanee Hospital Public and Mahachai 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 Mahachai Hospital Public are associated (or correlated) with Rajthanee Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rajthanee Hospital Public has no effect on the direction of Mahachai Hospital i.e., Mahachai Hospital and Rajthanee Hospital go up and down completely randomly.
Pair Corralation between Mahachai Hospital and Rajthanee Hospital
Assuming the 90 days trading horizon Mahachai Hospital is expected to generate 1.09 times less return on investment than Rajthanee Hospital. In addition to that, Mahachai Hospital is 1.0 times more volatile than Rajthanee Hospital Public. It trades about 0.04 of its total potential returns per unit of risk. Rajthanee Hospital Public is currently generating about 0.05 per unit of volatility. If you would invest 2,623 in Rajthanee Hospital Public on September 12, 2024 and sell it today you would lose (503.00) from holding Rajthanee Hospital Public or give up 19.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mahachai Hospital Public vs. Rajthanee Hospital Public
Performance |
| Timeline |
| Mahachai Hospital Public |
| Rajthanee Hospital Public |
Mahachai Hospital and Rajthanee Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahachai Hospital and Rajthanee Hospital
The main advantage of trading using opposite Mahachai Hospital and Rajthanee Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahachai Hospital position performs unexpectedly, Rajthanee 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 Rajthanee Hospital will offset losses from the drop in Rajthanee Hospital's long position.| Mahachai Hospital vs. Rajthanee Hospital Public | Mahachai Hospital vs. Chularat Hospital Public | Mahachai Hospital vs. Ekachai Medical Care | Mahachai Hospital vs. Bangkok Chain Hospital |
| Rajthanee Hospital vs. Chularat Hospital Public | Rajthanee Hospital vs. Ekachai Medical Care | Rajthanee Hospital vs. Bangkok Chain Hospital | Rajthanee 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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