Correlation Between Rajthanee Hospital and Ramkhamhaeng Hospital
Can any of the company-specific risk be diversified away by investing in both Rajthanee Hospital and Ramkhamhaeng 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 Ramkhamhaeng 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 Ramkhamhaeng Hospital Public, you can compare the effects of market volatilities on Rajthanee Hospital and Ramkhamhaeng 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 Ramkhamhaeng Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rajthanee Hospital and Ramkhamhaeng Hospital.
Diversification Opportunities for Rajthanee Hospital and Ramkhamhaeng Hospital
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Rajthanee and Ramkhamhaeng is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Rajthanee Hospital Public and Ramkhamhaeng Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ramkhamhaeng 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 Ramkhamhaeng Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ramkhamhaeng Hospital has no effect on the direction of Rajthanee Hospital i.e., Rajthanee Hospital and Ramkhamhaeng Hospital go up and down completely randomly.
Pair Corralation between Rajthanee Hospital and Ramkhamhaeng Hospital
Assuming the 90 days trading horizon Rajthanee Hospital Public is expected to under-perform the Ramkhamhaeng Hospital. In addition to that, Rajthanee Hospital is 1.58 times more volatile than Ramkhamhaeng Hospital Public. It trades about -0.15 of its total potential returns per unit of risk. Ramkhamhaeng Hospital Public is currently generating about -0.21 per unit of volatility. If you would invest 2,155 in Ramkhamhaeng Hospital Public on November 27, 2024 and sell it today you would lose (125.00) from holding Ramkhamhaeng Hospital Public or give up 5.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rajthanee Hospital Public vs. Ramkhamhaeng Hospital Public
Performance |
| Timeline |
| Rajthanee Hospital Public |
| Ramkhamhaeng Hospital |
Rajthanee Hospital and Ramkhamhaeng Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rajthanee Hospital and Ramkhamhaeng Hospital
The main advantage of trading using opposite Rajthanee Hospital and Ramkhamhaeng Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rajthanee Hospital position performs unexpectedly, Ramkhamhaeng 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 Ramkhamhaeng Hospital will offset losses from the drop in Ramkhamhaeng Hospital'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 |
| Ramkhamhaeng Hospital vs. Bangkok Chain Hospital | Ramkhamhaeng Hospital vs. Nonthavej Hospital Public | Ramkhamhaeng Hospital vs. Bumrungrad Hospital PCL | Ramkhamhaeng Hospital vs. Vibhavadi Medical Center |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |