Correlation Between Healthlead Public and Ratchthani Leasing

Can any of the company-specific risk be diversified away by investing in both Healthlead Public and Ratchthani Leasing 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 Healthlead Public and Ratchthani Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Healthlead Public and Ratchthani Leasing Public, you can compare the effects of market volatilities on Healthlead Public and Ratchthani Leasing 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 Healthlead Public with a short position of Ratchthani Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthlead Public and Ratchthani Leasing.

Diversification Opportunities for Healthlead Public and Ratchthani Leasing

-0.65

Correlation Coefficient

Healthlead Public  Ratchthani Leasing

Excellent diversification

The 3 months correlation between Healthlead and Ratchthani is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Healthlead Public and Ratchthani Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratchthani Leasing Public and Healthlead 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 Healthlead Public are associated (or correlated) with Ratchthani Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratchthani Leasing Public has no effect on the direction of Healthlead Public i.e., Healthlead Public and Ratchthani Leasing go up and down completely randomly.

Pair Corralation between Healthlead Public and Ratchthani Leasing

Assuming the 90 days horizon Healthlead Public is expected to under-perform the Ratchthani Leasing. But the stock apears to be less risky and, when comparing its historical volatility, Healthlead Public is 1.43 times less risky than Ratchthani Leasing. The stock trades about -0.21 of its potential returns per unit of risk. The Ratchthani Leasing Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  153.00  in Ratchthani Leasing Public on December 26, 2024 and sell it today you would earn a total of  15.00  from holding Ratchthani Leasing Public or generate 9.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Healthlead Public  vs.  Ratchthani Leasing Public

Healthlead Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Healthlead Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Ratchthani Leasing Public

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ratchthani Leasing Public are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental drivers, Ratchthani Leasing sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Healthlead Public and Ratchthani Leasing

The main advantage of trading using opposite Healthlead Public and Ratchthani Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthlead Public position performs unexpectedly, Ratchthani Leasing 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 Ratchthani Leasing will offset losses from the drop in Ratchthani Leasing's long position.

The idea behind Healthlead Public and Ratchthani Leasing Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.