Correlation Between Patrangsit Healthcare and Ratchaphruek Hospital
Can any of the company-specific risk be diversified away by investing in both Patrangsit Healthcare and Ratchaphruek 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 Patrangsit Healthcare and Ratchaphruek Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Patrangsit Healthcare Group and Ratchaphruek Hospital Public, you can compare the effects of market volatilities on Patrangsit Healthcare and Ratchaphruek 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 Patrangsit Healthcare with a short position of Ratchaphruek Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Patrangsit Healthcare and Ratchaphruek Hospital.
Diversification Opportunities for Patrangsit Healthcare and Ratchaphruek Hospital
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Patrangsit and Ratchaphruek is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Patrangsit Healthcare Group and Ratchaphruek Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratchaphruek Hospital and Patrangsit Healthcare 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 Patrangsit Healthcare Group are associated (or correlated) with Ratchaphruek Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratchaphruek Hospital has no effect on the direction of Patrangsit Healthcare i.e., Patrangsit Healthcare and Ratchaphruek Hospital go up and down completely randomly.
Pair Corralation between Patrangsit Healthcare and Ratchaphruek Hospital
Assuming the 90 days trading horizon Patrangsit Healthcare Group is expected to generate 2.59 times more return on investment than Ratchaphruek Hospital. However, Patrangsit Healthcare is 2.59 times more volatile than Ratchaphruek Hospital Public. It trades about -0.04 of its potential returns per unit of risk. Ratchaphruek Hospital Public is currently generating about -0.21 per unit of risk. If you would invest 1,620 in Patrangsit Healthcare Group on September 13, 2024 and sell it today you would lose (60.00) from holding Patrangsit Healthcare Group or give up 3.7% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Patrangsit Healthcare Group vs. Ratchaphruek Hospital Public
Performance |
Timeline |
Patrangsit Healthcare |
Ratchaphruek Hospital |
Patrangsit Healthcare and Ratchaphruek Hospital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Patrangsit Healthcare and Ratchaphruek Hospital
The main advantage of trading using opposite Patrangsit Healthcare and Ratchaphruek Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Patrangsit Healthcare position performs unexpectedly, Ratchaphruek 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 Ratchaphruek Hospital will offset losses from the drop in Ratchaphruek Hospital's long position.Patrangsit Healthcare vs. Phatra Leasing Public | Patrangsit Healthcare vs. BPS TECHNOLOGY PUBLIC | Patrangsit Healthcare vs. Ally Leasehold Real | Patrangsit Healthcare vs. Somboon Advance Technology |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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