Correlation Between Ramkhamhaeng Hospital and Praram 9
Can any of the company-specific risk be diversified away by investing in both Ramkhamhaeng Hospital and Praram 9 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 Praram 9 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 Praram 9 Hospital, you can compare the effects of market volatilities on Ramkhamhaeng Hospital and Praram 9 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 Praram 9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramkhamhaeng Hospital and Praram 9.
Diversification Opportunities for Ramkhamhaeng Hospital and Praram 9
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ramkhamhaeng and Praram is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ramkhamhaeng Hospital Public and Praram 9 Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praram 9 Hospital 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 Praram 9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praram 9 Hospital has no effect on the direction of Ramkhamhaeng Hospital i.e., Ramkhamhaeng Hospital and Praram 9 go up and down completely randomly.
Pair Corralation between Ramkhamhaeng Hospital and Praram 9
Assuming the 90 days trading horizon Ramkhamhaeng Hospital Public is expected to under-perform the Praram 9. But the stock apears to be less risky and, when comparing its historical volatility, Ramkhamhaeng Hospital Public is 2.47 times less risky than Praram 9. The stock trades about -0.07 of its potential returns per unit of risk. The Praram 9 Hospital is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,436 in Praram 9 Hospital on September 1, 2024 and sell it today you would earn a total of 139.00 from holding Praram 9 Hospital or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ramkhamhaeng Hospital Public vs. Praram 9 Hospital
Performance |
| Timeline |
| Ramkhamhaeng Hospital |
| Praram 9 Hospital |
Ramkhamhaeng Hospital and Praram 9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ramkhamhaeng Hospital and Praram 9
The main advantage of trading using opposite Ramkhamhaeng Hospital and Praram 9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramkhamhaeng Hospital position performs unexpectedly, Praram 9 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 Praram 9 will offset losses from the drop in Praram 9's long position.| Ramkhamhaeng Hospital vs. AP Public | Ramkhamhaeng Hospital vs. Advanced Information Technology | Ramkhamhaeng Hospital vs. AJ Plast Public | Ramkhamhaeng Hospital vs. Berli Jucker 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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