Correlation Between Ratchaphruek Hospital and Rajthanee Hospital
Can any of the company-specific risk be diversified away by investing in both Ratchaphruek Hospital and Rajthanee 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 Ratchaphruek Hospital and Rajthanee Hospital 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 Rajthanee Hospital Public, you can compare the effects of market volatilities on Ratchaphruek Hospital and Rajthanee 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 Ratchaphruek Hospital with a short position of Rajthanee Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ratchaphruek Hospital and Rajthanee Hospital.
Diversification Opportunities for Ratchaphruek Hospital and Rajthanee Hospital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ratchaphruek and Rajthanee is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ratchaphruek Hospital Public and Rajthanee Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rajthanee Hospital Public 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 Rajthanee Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rajthanee Hospital Public has no effect on the direction of Ratchaphruek Hospital i.e., Ratchaphruek Hospital and Rajthanee Hospital go up and down completely randomly.
Pair Corralation between Ratchaphruek Hospital and Rajthanee Hospital
Assuming the 90 days trading horizon Ratchaphruek Hospital Public is expected to under-perform the Rajthanee Hospital. But the stock apears to be less risky and, when comparing its historical volatility, Ratchaphruek Hospital Public is 5.55 times less risky than Rajthanee Hospital. The stock trades about -0.24 of its potential returns per unit of risk. The Rajthanee Hospital Public is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2,330 in Rajthanee Hospital Public on August 31, 2024 and sell it today you would lose (60.00) from holding Rajthanee Hospital Public or give up 2.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ratchaphruek Hospital Public vs. Rajthanee Hospital Public
Performance |
| Timeline |
| Ratchaphruek Hospital |
| Rajthanee Hospital Public |
Ratchaphruek Hospital and Rajthanee Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ratchaphruek Hospital and Rajthanee Hospital
The main advantage of trading using opposite Ratchaphruek Hospital and Rajthanee Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ratchaphruek Hospital position performs unexpectedly, Rajthanee 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 Rajthanee Hospital will offset losses from the drop in Rajthanee Hospital's long position.| Ratchaphruek Hospital vs. AP Public | Ratchaphruek Hospital vs. Bumrungrad Hospital Public | Ratchaphruek Hospital vs. Advanced Information Technology | Ratchaphruek Hospital vs. AJ Plast Public |
| Rajthanee Hospital vs. AP Public | Rajthanee Hospital vs. Bumrungrad Hospital Public | Rajthanee Hospital vs. Advanced Information Technology | Rajthanee Hospital vs. AJ Plast 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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