Correlation Between Rajthanee Hospital and Plus Tech
Can any of the company-specific risk be diversified away by investing in both Rajthanee Hospital and Plus Tech 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 Plus Tech 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 Plus Tech Innovation, you can compare the effects of market volatilities on Rajthanee Hospital and Plus Tech 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 Plus Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rajthanee Hospital and Plus Tech.
Diversification Opportunities for Rajthanee Hospital and Plus Tech
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rajthanee and Plus is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Rajthanee Hospital Public and Plus Tech Innovation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plus Tech Innovation 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 Plus Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plus Tech Innovation has no effect on the direction of Rajthanee Hospital i.e., Rajthanee Hospital and Plus Tech go up and down completely randomly.
Pair Corralation between Rajthanee Hospital and Plus Tech
Assuming the 90 days trading horizon Rajthanee Hospital Public is expected to generate 20.79 times more return on investment than Plus Tech. However, Rajthanee Hospital is 20.79 times more volatile than Plus Tech Innovation. It trades about 0.11 of its potential returns per unit of risk. Plus Tech Innovation is currently generating about -0.35 per unit of risk. If you would invest 2,320 in Rajthanee Hospital Public on August 28, 2024 and sell it today you would lose (70.00) from holding Rajthanee Hospital Public or give up 3.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rajthanee Hospital Public vs. Plus Tech Innovation
Performance |
| Timeline |
| Rajthanee Hospital Public |
| Plus Tech Innovation |
Rajthanee Hospital and Plus Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rajthanee Hospital and Plus Tech
The main advantage of trading using opposite Rajthanee Hospital and Plus Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rajthanee Hospital position performs unexpectedly, Plus Tech 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 Plus Tech will offset losses from the drop in Plus Tech's long position.| Rajthanee Hospital vs. Bangkok Chain Hospital | Rajthanee Hospital vs. Chularat Hospital Public | Rajthanee Hospital vs. Ratchaphruek Hospital Public | Rajthanee Hospital vs. Ekachai Medical Care |
| Plus Tech vs. Com7 PCL | Plus Tech vs. TKS Technologies Public | Plus Tech vs. Rajthanee Hospital Public | Plus Tech vs. The Erawan Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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