Correlation Between THAI BEVERAGE and Ramsay Health
Can any of the company-specific risk be diversified away by investing in both THAI BEVERAGE and Ramsay Health 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 THAI BEVERAGE and Ramsay Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THAI BEVERAGE and Ramsay Health Care, you can compare the effects of market volatilities on THAI BEVERAGE and Ramsay Health 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 THAI BEVERAGE with a short position of Ramsay Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of THAI BEVERAGE and Ramsay Health.
Diversification Opportunities for THAI BEVERAGE and Ramsay Health
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between THAI and Ramsay is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding THAI BEVERAGE and Ramsay Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ramsay Health Care and THAI BEVERAGE 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 THAI BEVERAGE are associated (or correlated) with Ramsay Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ramsay Health Care has no effect on the direction of THAI BEVERAGE i.e., THAI BEVERAGE and Ramsay Health go up and down completely randomly.
Pair Corralation between THAI BEVERAGE and Ramsay Health
Assuming the 90 days trading horizon THAI BEVERAGE is expected to generate 3.11 times more return on investment than Ramsay Health. However, THAI BEVERAGE is 3.11 times more volatile than Ramsay Health Care. It trades about 0.06 of its potential returns per unit of risk. Ramsay Health Care is currently generating about -0.06 per unit of risk. If you would invest 15.00 in THAI BEVERAGE on September 4, 2024 and sell it today you would earn a total of 24.00 from holding THAI BEVERAGE or generate 160.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
THAI BEVERAGE vs. Ramsay Health Care
Performance |
| Timeline |
| THAI BEVERAGE |
| Ramsay Health Care |
THAI BEVERAGE and Ramsay Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THAI BEVERAGE and Ramsay Health
The main advantage of trading using opposite THAI BEVERAGE and Ramsay Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THAI BEVERAGE position performs unexpectedly, Ramsay Health 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 Ramsay Health will offset losses from the drop in Ramsay Health's long position.| THAI BEVERAGE vs. TOTAL GABON | THAI BEVERAGE vs. Walgreens Boots Alliance | THAI BEVERAGE vs. Peak Resources Limited |
| Ramsay Health vs. Superior Plus Corp | Ramsay Health vs. NMI Holdings | Ramsay Health vs. Origin Agritech | Ramsay Health vs. SIVERS SEMICONDUCTORS AB |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |