Correlation Between Ramsay Health and Bumrungrad Hospital
Can any of the company-specific risk be diversified away by investing in both Ramsay Health and Bumrungrad 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 Ramsay Health and Bumrungrad Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ramsay Health Care and Bumrungrad Hospital Public, you can compare the effects of market volatilities on Ramsay Health and Bumrungrad 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 Ramsay Health with a short position of Bumrungrad Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramsay Health and Bumrungrad Hospital.
Diversification Opportunities for Ramsay Health and Bumrungrad Hospital
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ramsay and Bumrungrad is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ramsay Health Care and Bumrungrad Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bumrungrad Hospital and Ramsay Health 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 Ramsay Health Care are associated (or correlated) with Bumrungrad Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bumrungrad Hospital has no effect on the direction of Ramsay Health i.e., Ramsay Health and Bumrungrad Hospital go up and down completely randomly.
Pair Corralation between Ramsay Health and Bumrungrad Hospital
Assuming the 90 days horizon Ramsay Health Care is expected to generate 0.5 times more return on investment than Bumrungrad Hospital. However, Ramsay Health Care is 2.01 times less risky than Bumrungrad Hospital. It trades about -0.07 of its potential returns per unit of risk. Bumrungrad Hospital Public is currently generating about -0.27 per unit of risk. If you would invest 2,040 in Ramsay Health Care on November 2, 2024 and sell it today you would lose (40.00) from holding Ramsay Health Care or give up 1.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ramsay Health Care vs. Bumrungrad Hospital Public
Performance |
| Timeline |
| Ramsay Health Care |
| Bumrungrad Hospital |
Ramsay Health and Bumrungrad Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ramsay Health and Bumrungrad Hospital
The main advantage of trading using opposite Ramsay Health and Bumrungrad Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramsay Health position performs unexpectedly, Bumrungrad 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 Bumrungrad Hospital will offset losses from the drop in Bumrungrad Hospital's long position.| Ramsay Health vs. InterContinental Hotels Group | Ramsay Health vs. HYATT HOTELS A | Ramsay Health vs. Summit Hotel Properties | Ramsay Health vs. Sims Metal Management |
| Bumrungrad Hospital vs. Ramsay Health Care | Bumrungrad Hospital vs. Richter Gedeon Vegyszeti | Bumrungrad Hospital vs. Select Medical Holdings | Bumrungrad Hospital vs. Medicover AB |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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