Correlation Between Ramkhamhaeng Hospital and Wattana Karnpaet
Can any of the company-specific risk be diversified away by investing in both Ramkhamhaeng Hospital and Wattana Karnpaet 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 Wattana Karnpaet 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 Wattana Karnpaet Public, you can compare the effects of market volatilities on Ramkhamhaeng Hospital and Wattana Karnpaet 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 Wattana Karnpaet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramkhamhaeng Hospital and Wattana Karnpaet.
Diversification Opportunities for Ramkhamhaeng Hospital and Wattana Karnpaet
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ramkhamhaeng and Wattana is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Ramkhamhaeng Hospital Public and Wattana Karnpaet Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wattana Karnpaet 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 Wattana Karnpaet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wattana Karnpaet Public has no effect on the direction of Ramkhamhaeng Hospital i.e., Ramkhamhaeng Hospital and Wattana Karnpaet go up and down completely randomly.
Pair Corralation between Ramkhamhaeng Hospital and Wattana Karnpaet
Assuming the 90 days trading horizon Ramkhamhaeng Hospital Public is expected to under-perform the Wattana Karnpaet. But the stock apears to be less risky and, when comparing its historical volatility, Ramkhamhaeng Hospital Public is 3.36 times less risky than Wattana Karnpaet. The stock trades about -0.18 of its potential returns per unit of risk. The Wattana Karnpaet Public is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 7,500 in Wattana Karnpaet Public on August 25, 2024 and sell it today you would lose (500.00) from holding Wattana Karnpaet Public or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ramkhamhaeng Hospital Public vs. Wattana Karnpaet Public
Performance |
| Timeline |
| Ramkhamhaeng Hospital |
| Wattana Karnpaet Public |
Ramkhamhaeng Hospital and Wattana Karnpaet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ramkhamhaeng Hospital and Wattana Karnpaet
The main advantage of trading using opposite Ramkhamhaeng Hospital and Wattana Karnpaet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramkhamhaeng Hospital position performs unexpectedly, Wattana Karnpaet 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 Wattana Karnpaet will offset losses from the drop in Wattana Karnpaet's long position.| Ramkhamhaeng Hospital vs. Chularat Hospital Public | Ramkhamhaeng Hospital vs. Ekachai Medical Care | Ramkhamhaeng Hospital vs. Bangkok Chain Hospital | Ramkhamhaeng Hospital vs. Srivichaivejvivat Public |
| Wattana Karnpaet vs. Chularat Hospital Public | Wattana Karnpaet vs. Ekachai Medical Care | Wattana Karnpaet vs. Bangkok Chain Hospital | Wattana Karnpaet 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 CEOs Directory module to screen CEOs from public companies around the world.
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