Correlation Between Rajthanee Hospital and Sikarin Public
Can any of the company-specific risk be diversified away by investing in both Rajthanee Hospital and Sikarin Public 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 Sikarin Public 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 Sikarin Public, you can compare the effects of market volatilities on Rajthanee Hospital and Sikarin Public 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 Sikarin Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rajthanee Hospital and Sikarin Public.
Diversification Opportunities for Rajthanee Hospital and Sikarin Public
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rajthanee and Sikarin is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Rajthanee Hospital Public and Sikarin Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sikarin Public 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 Sikarin Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sikarin Public has no effect on the direction of Rajthanee Hospital i.e., Rajthanee Hospital and Sikarin Public go up and down completely randomly.
Pair Corralation between Rajthanee Hospital and Sikarin Public
Assuming the 90 days trading horizon Rajthanee Hospital Public is expected to under-perform the Sikarin Public. In addition to that, Rajthanee Hospital is 1.47 times more volatile than Sikarin Public. It trades about -0.05 of its total potential returns per unit of risk. Sikarin Public is currently generating about -0.03 per unit of volatility. If you would invest 1,021 in Sikarin Public on September 14, 2024 and sell it today you would lose (71.00) from holding Sikarin Public or give up 6.95% 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. Sikarin Public
Performance |
| Timeline |
| Rajthanee Hospital Public |
| Sikarin Public |
Rajthanee Hospital and Sikarin Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rajthanee Hospital and Sikarin Public
The main advantage of trading using opposite Rajthanee Hospital and Sikarin Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rajthanee Hospital position performs unexpectedly, Sikarin Public 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 Sikarin Public will offset losses from the drop in Sikarin Public's long position.| Rajthanee Hospital vs. Chularat Hospital Public | Rajthanee Hospital vs. Ekachai Medical Care | Rajthanee Hospital vs. Bangkok Chain Hospital | Rajthanee Hospital vs. Srivichaivejvivat Public |
| Sikarin Public vs. Rajthanee Hospital Public | Sikarin Public vs. Chularat Hospital Public | Sikarin Public vs. Ekachai Medical Care | Sikarin Public vs. Bangkok Chain Hospital |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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