Correlation Between SKijchai Enterprise and Rajthanee Hospital
Can any of the company-specific risk be diversified away by investing in both SKijchai Enterprise 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 SKijchai Enterprise and Rajthanee Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SKijchai Enterprise Public and Rajthanee Hospital Public, you can compare the effects of market volatilities on SKijchai Enterprise 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 SKijchai Enterprise with a short position of Rajthanee Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of SKijchai Enterprise and Rajthanee Hospital.
Diversification Opportunities for SKijchai Enterprise and Rajthanee Hospital
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SKijchai and Rajthanee is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding SKijchai Enterprise 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 SKijchai Enterprise 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 SKijchai Enterprise 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 SKijchai Enterprise i.e., SKijchai Enterprise and Rajthanee Hospital go up and down completely randomly.
Pair Corralation between SKijchai Enterprise and Rajthanee Hospital
Assuming the 90 days trading horizon SKijchai Enterprise Public is expected to generate 37.65 times more return on investment than Rajthanee Hospital. However, SKijchai Enterprise is 37.65 times more volatile than Rajthanee Hospital Public. It trades about 0.04 of its potential returns per unit of risk. Rajthanee Hospital Public is currently generating about -0.06 per unit of risk. If you would invest 472.00 in SKijchai Enterprise Public on October 24, 2024 and sell it today you would earn a total of 73.00 from holding SKijchai Enterprise Public or generate 15.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SKijchai Enterprise Public vs. Rajthanee Hospital Public
Performance |
| Timeline |
| SKijchai Enterprise |
| Rajthanee Hospital Public |
SKijchai Enterprise and Rajthanee Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SKijchai Enterprise and Rajthanee Hospital
The main advantage of trading using opposite SKijchai Enterprise and Rajthanee Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SKijchai Enterprise 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.| SKijchai Enterprise vs. Tipco Foods Public | SKijchai Enterprise vs. STPI Public | SKijchai Enterprise vs. Seafco Public | SKijchai Enterprise vs. Tipco Asphalt Public |
| Rajthanee Hospital vs. Bangkok Chain Hospital | Rajthanee Hospital vs. Chularat Hospital Public | Rajthanee Hospital vs. Ratchaphruek Hospital Public | Rajthanee Hospital vs. Ekachai Medical Care |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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