Correlation Between Ramkhamhaeng Hospital and SAF Special
Can any of the company-specific risk be diversified away by investing in both Ramkhamhaeng Hospital and SAF Special 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 SAF Special 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 SAF Special Steel, you can compare the effects of market volatilities on Ramkhamhaeng Hospital and SAF Special 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 SAF Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramkhamhaeng Hospital and SAF Special.
Diversification Opportunities for Ramkhamhaeng Hospital and SAF Special
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ramkhamhaeng and SAF is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ramkhamhaeng Hospital Public and SAF Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAF Special Steel 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 SAF Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAF Special Steel has no effect on the direction of Ramkhamhaeng Hospital i.e., Ramkhamhaeng Hospital and SAF Special go up and down completely randomly.
Pair Corralation between Ramkhamhaeng Hospital and SAF Special
Assuming the 90 days trading horizon Ramkhamhaeng Hospital Public is expected to generate 0.29 times more return on investment than SAF Special. However, Ramkhamhaeng Hospital Public is 3.5 times less risky than SAF Special. It trades about -0.02 of its potential returns per unit of risk. SAF Special Steel is currently generating about -0.03 per unit of risk. If you would invest 2,365 in Ramkhamhaeng Hospital Public on September 3, 2024 and sell it today you would lose (35.00) from holding Ramkhamhaeng Hospital Public or give up 1.48% 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. SAF Special Steel
Performance |
| Timeline |
| Ramkhamhaeng Hospital |
| SAF Special Steel |
Ramkhamhaeng Hospital and SAF Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ramkhamhaeng Hospital and SAF Special
The main advantage of trading using opposite Ramkhamhaeng Hospital and SAF Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramkhamhaeng Hospital position performs unexpectedly, SAF Special 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 SAF Special will offset losses from the drop in SAF Special's long position.| Ramkhamhaeng Hospital vs. Bangkok Dusit Medical | Ramkhamhaeng Hospital vs. CP ALL Public | Ramkhamhaeng Hospital vs. Central Pattana Public | Ramkhamhaeng Hospital vs. Airports of Thailand |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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