Correlation Between Ratchaphruek Hospital and Bangkok Dusit
Can any of the company-specific risk be diversified away by investing in both Ratchaphruek Hospital and Bangkok Dusit 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 Ratchaphruek Hospital and Bangkok Dusit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ratchaphruek Hospital Public and Bangkok Dusit Medical, you can compare the effects of market volatilities on Ratchaphruek Hospital and Bangkok Dusit 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 Ratchaphruek Hospital with a short position of Bangkok Dusit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ratchaphruek Hospital and Bangkok Dusit.
Diversification Opportunities for Ratchaphruek Hospital and Bangkok Dusit
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ratchaphruek and Bangkok is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ratchaphruek Hospital Public and Bangkok Dusit Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Dusit Medical and Ratchaphruek 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 Ratchaphruek Hospital Public are associated (or correlated) with Bangkok Dusit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Dusit Medical has no effect on the direction of Ratchaphruek Hospital i.e., Ratchaphruek Hospital and Bangkok Dusit go up and down completely randomly.
Pair Corralation between Ratchaphruek Hospital and Bangkok Dusit
Assuming the 90 days trading horizon Ratchaphruek Hospital Public is expected to generate 0.34 times more return on investment than Bangkok Dusit. However, Ratchaphruek Hospital Public is 2.96 times less risky than Bangkok Dusit. It trades about -0.29 of its potential returns per unit of risk. Bangkok Dusit Medical is currently generating about -0.24 per unit of risk. If you would invest 570.00 in Ratchaphruek Hospital Public on September 12, 2024 and sell it today you would lose (30.00) from holding Ratchaphruek Hospital Public or give up 5.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ratchaphruek Hospital Public vs. Bangkok Dusit Medical
Performance |
| Timeline |
| Ratchaphruek Hospital |
| Bangkok Dusit Medical |
Ratchaphruek Hospital and Bangkok Dusit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ratchaphruek Hospital and Bangkok Dusit
The main advantage of trading using opposite Ratchaphruek Hospital and Bangkok Dusit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ratchaphruek Hospital position performs unexpectedly, Bangkok Dusit 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 Bangkok Dusit will offset losses from the drop in Bangkok Dusit's long position.| Ratchaphruek Hospital vs. Rajthanee Hospital Public | Ratchaphruek Hospital vs. Chularat Hospital Public | Ratchaphruek Hospital vs. Ekachai Medical Care | Ratchaphruek Hospital vs. Bangkok Chain Hospital |
| Bangkok Dusit vs. Bumrungrad Hospital Public | Bangkok Dusit vs. Bangkok Chain Hospital | Bangkok Dusit vs. Ramkhamhaeng Hospital Public | Bangkok Dusit 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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