Correlation Between Ramkhamhaeng Hospital and Crown Seal

Can any of the company-specific risk be diversified away by investing in both Ramkhamhaeng Hospital and Crown Seal 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 Ramkhamhaeng Hospital and Crown Seal into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Ramkhamhaeng Hospital and Crown Seal

0.13

Correlation Coefficient

Ramkhamhaeng Hospital  Crown Seal

Average diversification

The 3 months correlation between Ramkhamhaeng and Crown is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Ramkhamhaeng Hospital Public and Crown Seal Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crown Seal Public and Ramkhamhaeng Hospital 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 Ramkhamhaeng Hospital Public are associated (or correlated) with Crown Seal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crown Seal Public has no effect on the direction of Ramkhamhaeng Hospital i.e., Ramkhamhaeng Hospital and Crown Seal go up and down completely randomly.

Pair Corralation between Ramkhamhaeng Hospital and Crown Seal

Assuming the 90 days trading horizon Ramkhamhaeng Hospital Public is expected to under-perform the Crown Seal. But the stock apears to be less risky and, when comparing its historical volatility, Ramkhamhaeng Hospital Public is 1.28 times less risky than Crown Seal. The stock trades about -0.34 of its potential returns per unit of risk. The Crown Seal Public is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  4,307  in Crown Seal Public on December 25, 2024 and sell it today you would earn a total of  18.00  from holding Crown Seal Public or generate 0.42% return on investment over 90 days.

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

Ramkhamhaeng Hospital Public  vs.  Crown Seal Public

Ramkhamhaeng Hospital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ramkhamhaeng Hospital 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 primary indicators 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.

Crown Seal Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Crown Seal Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, Crown Seal is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Ramkhamhaeng Hospital and Crown Seal

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

The idea behind Ramkhamhaeng Hospital Public and Crown Seal 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.