Correlation Between Rajthanee Hospital and SKijchai Enterprise
Can any of the company-specific risk be diversified away by investing in both Rajthanee Hospital and SKijchai Enterprise 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 SKijchai Enterprise 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 SKijchai Enterprise Public, you can compare the effects of market volatilities on Rajthanee Hospital and SKijchai Enterprise 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 SKijchai Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rajthanee Hospital and SKijchai Enterprise.
Diversification Opportunities for Rajthanee Hospital and SKijchai Enterprise
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rajthanee and SKijchai is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Rajthanee Hospital Public and SKijchai Enterprise Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SKijchai Enterprise 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 SKijchai Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SKijchai Enterprise has no effect on the direction of Rajthanee Hospital i.e., Rajthanee Hospital and SKijchai Enterprise go up and down completely randomly.
Pair Corralation between Rajthanee Hospital and SKijchai Enterprise
Assuming the 90 days trading horizon Rajthanee Hospital Public is expected to under-perform the SKijchai Enterprise. But the stock apears to be less risky and, when comparing its historical volatility, Rajthanee Hospital Public is 37.65 times less risky than SKijchai Enterprise. The stock trades about -0.06 of its potential returns per unit of risk. The SKijchai Enterprise Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 472.00 in SKijchai Enterprise Public on October 24, 2024 and sell it today you would earn a total of 73.00 from holding SKijchai Enterprise Public or generate 15.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rajthanee Hospital Public vs. SKijchai Enterprise Public
Performance |
| Timeline |
| Rajthanee Hospital Public |
| SKijchai Enterprise |
Rajthanee Hospital and SKijchai Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rajthanee Hospital and SKijchai Enterprise
The main advantage of trading using opposite Rajthanee Hospital and SKijchai Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rajthanee Hospital position performs unexpectedly, SKijchai Enterprise 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 SKijchai Enterprise will offset losses from the drop in SKijchai Enterprise'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 |
| SKijchai Enterprise vs. Tipco Foods Public | SKijchai Enterprise vs. STPI Public | SKijchai Enterprise vs. Seafco Public | SKijchai Enterprise vs. Tipco Asphalt 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges |