Correlation Between Ratchaphruek Hospital and Bioscience Animal
Can any of the company-specific risk be diversified away by investing in both Ratchaphruek Hospital and Bioscience Animal 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 Bioscience Animal 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 Bioscience Animal Health, you can compare the effects of market volatilities on Ratchaphruek Hospital and Bioscience Animal 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 Bioscience Animal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ratchaphruek Hospital and Bioscience Animal.
Diversification Opportunities for Ratchaphruek Hospital and Bioscience Animal
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ratchaphruek and Bioscience is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ratchaphruek Hospital Public and Bioscience Animal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bioscience Animal Health 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 Bioscience Animal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bioscience Animal Health has no effect on the direction of Ratchaphruek Hospital i.e., Ratchaphruek Hospital and Bioscience Animal go up and down completely randomly.
Pair Corralation between Ratchaphruek Hospital and Bioscience Animal
Assuming the 90 days trading horizon Ratchaphruek Hospital Public is expected to generate 37.17 times more return on investment than Bioscience Animal. However, Ratchaphruek Hospital is 37.17 times more volatile than Bioscience Animal Health. It trades about 0.1 of its potential returns per unit of risk. Bioscience Animal Health is currently generating about -0.05 per unit of risk. If you would invest 0.00 in Ratchaphruek Hospital Public on November 2, 2024 and sell it today you would earn a total of 545.00 from holding Ratchaphruek Hospital Public or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ratchaphruek Hospital Public vs. Bioscience Animal Health
Performance |
| Timeline |
| Ratchaphruek Hospital |
| Bioscience Animal Health |
Ratchaphruek Hospital and Bioscience Animal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ratchaphruek Hospital and Bioscience Animal
The main advantage of trading using opposite Ratchaphruek Hospital and Bioscience Animal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ratchaphruek Hospital position performs unexpectedly, Bioscience Animal 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 Bioscience Animal will offset losses from the drop in Bioscience Animal's long position.| Ratchaphruek Hospital vs. Bangkok Chain Hospital | Ratchaphruek Hospital vs. Nonthavej Hospital Public | Ratchaphruek Hospital vs. Bumrungrad Hospital PCL | Ratchaphruek Hospital vs. Vibhavadi Medical Center |
| Bioscience Animal vs. Knight Club Capital | Bioscience Animal vs. Chamni Eye PCL | Bioscience Animal vs. Bless Asset Group | Bioscience Animal vs. CAZ 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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