Correlation Between Ramkhamhaeng Hospital and Ratchaphruek Hospital
Can any of the company-specific risk be diversified away by investing in both Ramkhamhaeng Hospital and Ratchaphruek 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 Ramkhamhaeng Hospital and Ratchaphruek Hospital 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 Ratchaphruek Hospital Public, you can compare the effects of market volatilities on Ramkhamhaeng Hospital and Ratchaphruek 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 Ramkhamhaeng Hospital with a short position of Ratchaphruek Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramkhamhaeng Hospital and Ratchaphruek Hospital.
Diversification Opportunities for Ramkhamhaeng Hospital and Ratchaphruek Hospital
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ramkhamhaeng and Ratchaphruek is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ramkhamhaeng Hospital Public and Ratchaphruek Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratchaphruek 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 Ratchaphruek Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratchaphruek Hospital has no effect on the direction of Ramkhamhaeng Hospital i.e., Ramkhamhaeng Hospital and Ratchaphruek Hospital go up and down completely randomly.
Pair Corralation between Ramkhamhaeng Hospital and Ratchaphruek Hospital
Assuming the 90 days trading horizon Ramkhamhaeng Hospital Public is expected to under-perform the Ratchaphruek Hospital. In addition to that, Ramkhamhaeng Hospital is 1.16 times more volatile than Ratchaphruek Hospital Public. It trades about -0.1 of its total potential returns per unit of risk. Ratchaphruek Hospital Public is currently generating about 0.12 per unit of volatility. If you would invest 540.00 in Ratchaphruek Hospital Public on October 20, 2024 and sell it today you would earn a total of 10.00 from holding Ratchaphruek Hospital Public or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ramkhamhaeng Hospital Public vs. Ratchaphruek Hospital Public
Performance |
| Timeline |
| Ramkhamhaeng Hospital |
| Ratchaphruek Hospital |
Ramkhamhaeng Hospital and Ratchaphruek Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ramkhamhaeng Hospital and Ratchaphruek Hospital
The main advantage of trading using opposite Ramkhamhaeng Hospital and Ratchaphruek Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramkhamhaeng Hospital position performs unexpectedly, Ratchaphruek 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 Ratchaphruek Hospital will offset losses from the drop in Ratchaphruek Hospital'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 |
| Ratchaphruek Hospital vs. Rajthanee Hospital Public | Ratchaphruek Hospital vs. Chularat Hospital Public | Ratchaphruek Hospital vs. Ekachai Medical Care | Ratchaphruek Hospital vs. Bangkok Chain Hospital |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |