Correlation Between Ratchaphruek Hospital and RS Public
Can any of the company-specific risk be diversified away by investing in both Ratchaphruek Hospital and RS Public 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 RS Public 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 RS Public, you can compare the effects of market volatilities on Ratchaphruek Hospital and RS Public 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 RS Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ratchaphruek Hospital and RS Public.
Diversification Opportunities for Ratchaphruek Hospital and RS Public
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ratchaphruek and RS Public is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Ratchaphruek Hospital Public and RS Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RS 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 RS Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RS Public has no effect on the direction of Ratchaphruek Hospital i.e., Ratchaphruek Hospital and RS Public go up and down completely randomly.
Pair Corralation between Ratchaphruek Hospital and RS Public
Assuming the 90 days trading horizon Ratchaphruek Hospital Public is expected to generate 0.07 times more return on investment than RS Public. However, Ratchaphruek Hospital Public is 14.36 times less risky than RS Public. It trades about 0.11 of its potential returns per unit of risk. RS Public is currently generating about -0.54 per unit of risk. If you would invest 540.00 in Ratchaphruek Hospital Public on October 24, 2024 and sell it today you would earn a total of 10.00 from holding Ratchaphruek Hospital Public or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ratchaphruek Hospital Public vs. RS Public
Performance |
| Timeline |
| Ratchaphruek Hospital |
| RS Public |
Ratchaphruek Hospital and RS Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ratchaphruek Hospital and RS Public
The main advantage of trading using opposite Ratchaphruek Hospital and RS Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ratchaphruek Hospital position performs unexpectedly, RS Public 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 RS Public will offset losses from the drop in RS Public'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 |
| RS Public vs. Nonthavej Hospital Public | RS Public vs. Ratchaphruek Hospital Public | RS Public vs. Bangkok Chain Hospital | RS Public vs. Patrangsit Healthcare Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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