Correlation Between Ramkhamhaeng Hospital and KC Metalsheet
Can any of the company-specific risk be diversified away by investing in both Ramkhamhaeng Hospital and KC Metalsheet 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 KC Metalsheet 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 KC Metalsheet Public, you can compare the effects of market volatilities on Ramkhamhaeng Hospital and KC Metalsheet 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 KC Metalsheet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramkhamhaeng Hospital and KC Metalsheet.
Diversification Opportunities for Ramkhamhaeng Hospital and KC Metalsheet
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ramkhamhaeng and KCM is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Ramkhamhaeng Hospital Public and KC Metalsheet Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KC Metalsheet Public 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 KC Metalsheet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KC Metalsheet Public has no effect on the direction of Ramkhamhaeng Hospital i.e., Ramkhamhaeng Hospital and KC Metalsheet go up and down completely randomly.
Pair Corralation between Ramkhamhaeng Hospital and KC Metalsheet
Assuming the 90 days trading horizon Ramkhamhaeng Hospital Public is expected to under-perform the KC Metalsheet. But the stock apears to be less risky and, when comparing its historical volatility, Ramkhamhaeng Hospital Public is 67.54 times less risky than KC Metalsheet. The stock trades about -0.17 of its potential returns per unit of risk. The KC Metalsheet Public is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.00 in KC Metalsheet Public on November 2, 2024 and sell it today you would earn a total of 22.00 from holding KC Metalsheet Public or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ramkhamhaeng Hospital Public vs. KC Metalsheet Public
Performance |
| Timeline |
| Ramkhamhaeng Hospital |
| KC Metalsheet Public |
Ramkhamhaeng Hospital and KC Metalsheet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ramkhamhaeng Hospital and KC Metalsheet
The main advantage of trading using opposite Ramkhamhaeng Hospital and KC Metalsheet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramkhamhaeng Hospital position performs unexpectedly, KC Metalsheet 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 KC Metalsheet will offset losses from the drop in KC Metalsheet'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 |
| KC Metalsheet vs. Kingsmen CMTI Public | KC Metalsheet vs. Hydrotek Public | KC Metalsheet vs. Home Pottery Public | KC Metalsheet vs. The Erawan Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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