Correlation Between Rajthanee Hospital and Bumrungrad Hospital
Can any of the company-specific risk be diversified away by investing in both Rajthanee Hospital and Bumrungrad 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 Rajthanee Hospital and Bumrungrad Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rajthanee Hospital Public and Bumrungrad Hospital Public, you can compare the effects of market volatilities on Rajthanee Hospital and Bumrungrad 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 Rajthanee Hospital with a short position of Bumrungrad Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rajthanee Hospital and Bumrungrad Hospital.
Diversification Opportunities for Rajthanee Hospital and Bumrungrad Hospital
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Rajthanee and Bumrungrad is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Rajthanee Hospital Public and Bumrungrad Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bumrungrad Hospital and Rajthanee 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 Rajthanee Hospital Public are associated (or correlated) with Bumrungrad Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bumrungrad Hospital has no effect on the direction of Rajthanee Hospital i.e., Rajthanee Hospital and Bumrungrad Hospital go up and down completely randomly.
Pair Corralation between Rajthanee Hospital and Bumrungrad Hospital
Assuming the 90 days trading horizon Rajthanee Hospital Public is expected to generate 35.5 times more return on investment than Bumrungrad Hospital. However, Rajthanee Hospital is 35.5 times more volatile than Bumrungrad Hospital Public. It trades about 0.05 of its potential returns per unit of risk. Bumrungrad Hospital Public is currently generating about -0.03 per unit of risk. If you would invest 2,761 in Rajthanee Hospital Public on August 29, 2024 and sell it today you would lose (501.00) from holding Rajthanee Hospital Public or give up 18.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rajthanee Hospital Public vs. Bumrungrad Hospital Public
Performance |
| Timeline |
| Rajthanee Hospital Public |
| Bumrungrad Hospital |
Rajthanee Hospital and Bumrungrad Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rajthanee Hospital and Bumrungrad Hospital
The main advantage of trading using opposite Rajthanee Hospital and Bumrungrad Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rajthanee Hospital position performs unexpectedly, Bumrungrad 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 Bumrungrad Hospital will offset losses from the drop in Bumrungrad Hospital's long position.| Rajthanee Hospital vs. Chularat Hospital Public | Rajthanee Hospital vs. Bangkok Chain Hospital | Rajthanee Hospital vs. Bangkok Dusit Medical |
| Bumrungrad Hospital vs. Chularat Hospital Public | Bumrungrad Hospital vs. Bangkok Chain Hospital | Bumrungrad Hospital vs. Bangkok Dusit Medical | Bumrungrad Hospital vs. Rajthanee Hospital 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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