Correlation Between Sikarin Public and Rajthanee Hospital
Can any of the company-specific risk be diversified away by investing in both Sikarin Public 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 Sikarin Public and Rajthanee Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sikarin Public and Rajthanee Hospital Public, you can compare the effects of market volatilities on Sikarin Public 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 Sikarin Public with a short position of Rajthanee Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sikarin Public and Rajthanee Hospital.
Diversification Opportunities for Sikarin Public and Rajthanee Hospital
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sikarin and Rajthanee is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sikarin 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 Sikarin Public 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 Sikarin 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 Sikarin Public i.e., Sikarin Public and Rajthanee Hospital go up and down completely randomly.
Pair Corralation between Sikarin Public and Rajthanee Hospital
Assuming the 90 days trading horizon Sikarin Public is expected to generate 0.36 times more return on investment than Rajthanee Hospital. However, Sikarin Public is 2.79 times less risky than Rajthanee Hospital. It trades about 0.13 of its potential returns per unit of risk. Rajthanee Hospital Public is currently generating about -0.24 per unit of risk. If you would invest 920.00 in Sikarin Public on September 14, 2024 and sell it today you would earn a total of 20.00 from holding Sikarin Public or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sikarin Public vs. Rajthanee Hospital Public
Performance |
| Timeline |
| Sikarin Public |
| Rajthanee Hospital Public |
Sikarin Public and Rajthanee Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sikarin Public and Rajthanee Hospital
The main advantage of trading using opposite Sikarin Public and Rajthanee Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sikarin Public 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.| Sikarin Public vs. Rajthanee Hospital Public | Sikarin Public vs. Chularat Hospital Public | Sikarin Public vs. Ekachai Medical Care | Sikarin Public vs. Bangkok Chain Hospital |
| Rajthanee Hospital vs. Chularat Hospital Public | Rajthanee Hospital vs. Ekachai Medical Care | Rajthanee Hospital vs. Bangkok Chain Hospital | Rajthanee Hospital vs. Srivichaivejvivat 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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