Correlation Between Rajthanee Hospital and Srivichaivejvivat
Can any of the company-specific risk be diversified away by investing in both Rajthanee Hospital and Srivichaivejvivat 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 Srivichaivejvivat 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 Srivichaivejvivat Public, you can compare the effects of market volatilities on Rajthanee Hospital and Srivichaivejvivat 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 Srivichaivejvivat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rajthanee Hospital and Srivichaivejvivat.
Diversification Opportunities for Rajthanee Hospital and Srivichaivejvivat
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Rajthanee and Srivichaivejvivat is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Rajthanee Hospital Public and Srivichaivejvivat Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srivichaivejvivat 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 Srivichaivejvivat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srivichaivejvivat Public has no effect on the direction of Rajthanee Hospital i.e., Rajthanee Hospital and Srivichaivejvivat go up and down completely randomly.
Pair Corralation between Rajthanee Hospital and Srivichaivejvivat
Assuming the 90 days trading horizon Rajthanee Hospital Public is expected to generate 28.4 times more return on investment than Srivichaivejvivat. However, Rajthanee Hospital is 28.4 times more volatile than Srivichaivejvivat Public. It trades about 0.04 of its potential returns per unit of risk. Srivichaivejvivat Public is currently generating about 0.03 per unit of risk. If you would invest 2,928 in Rajthanee Hospital Public on August 27, 2024 and sell it today you would lose (668.00) from holding Rajthanee Hospital Public or give up 22.81% 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. Srivichaivejvivat Public
Performance |
| Timeline |
| Rajthanee Hospital Public |
| Srivichaivejvivat Public |
Rajthanee Hospital and Srivichaivejvivat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rajthanee Hospital and Srivichaivejvivat
The main advantage of trading using opposite Rajthanee Hospital and Srivichaivejvivat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rajthanee Hospital position performs unexpectedly, Srivichaivejvivat 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 Srivichaivejvivat will offset losses from the drop in Srivichaivejvivat'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 |
| Srivichaivejvivat vs. Ekachai Medical Care | Srivichaivejvivat vs. Bangkok Chain Hospital | Srivichaivejvivat vs. Chularat Hospital Public | Srivichaivejvivat 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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