Correlation Between Ramkhamhaeng Hospital and Business Online
Can any of the company-specific risk be diversified away by investing in both Ramkhamhaeng Hospital and Business Online 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 Ramkhamhaeng Hospital and Business Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ramkhamhaeng Hospital Public and Business Online PCL, you can compare the effects of market volatilities on Ramkhamhaeng Hospital and Business Online 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 Ramkhamhaeng Hospital with a short position of Business Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramkhamhaeng Hospital and Business Online.
Diversification Opportunities for Ramkhamhaeng Hospital and Business Online
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ramkhamhaeng and Business is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ramkhamhaeng Hospital Public and Business Online PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Business Online PCL and Ramkhamhaeng 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 Ramkhamhaeng Hospital Public are associated (or correlated) with Business Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Business Online PCL has no effect on the direction of Ramkhamhaeng Hospital i.e., Ramkhamhaeng Hospital and Business Online go up and down completely randomly.
Pair Corralation between Ramkhamhaeng Hospital and Business Online
Assuming the 90 days trading horizon Ramkhamhaeng Hospital Public is expected to under-perform the Business Online. But the stock apears to be less risky and, when comparing its historical volatility, Ramkhamhaeng Hospital Public is 1.47 times less risky than Business Online. The stock trades about -0.17 of its potential returns per unit of risk. The Business Online PCL is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 650.00 in Business Online PCL on November 2, 2024 and sell it today you would lose (125.00) from holding Business Online PCL or give up 19.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.03% |
| Values | Daily Returns |
Ramkhamhaeng Hospital Public vs. Business Online PCL
Performance |
| Timeline |
| Ramkhamhaeng Hospital |
| Business Online PCL |
Ramkhamhaeng Hospital and Business Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ramkhamhaeng Hospital and Business Online
The main advantage of trading using opposite Ramkhamhaeng Hospital and Business Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramkhamhaeng Hospital position performs unexpectedly, Business Online 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 Business Online will offset losses from the drop in Business Online's long position.| Ramkhamhaeng Hospital vs. Bangkok Chain Hospital | Ramkhamhaeng Hospital vs. Nonthavej Hospital Public | Ramkhamhaeng Hospital vs. Bumrungrad Hospital PCL | Ramkhamhaeng Hospital vs. Vibhavadi Medical Center |
| Business Online vs. J Sainsbury plc | Business Online vs. The Erawan Group | Business Online vs. Autocorp Holding Public | Business Online vs. Ditto 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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