Correlation Between Ramkhamhaeng Hospital and Patrangsit Healthcare

Can any of the company-specific risk be diversified away by investing in both Ramkhamhaeng Hospital and Patrangsit Healthcare 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 Patrangsit Healthcare 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 Patrangsit Healthcare Group, you can compare the effects of market volatilities on Ramkhamhaeng Hospital and Patrangsit Healthcare 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 Patrangsit Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramkhamhaeng Hospital and Patrangsit Healthcare.

Diversification Opportunities for Ramkhamhaeng Hospital and Patrangsit Healthcare

0.87

Correlation Coefficient

Ramkhamhaeng Hospital  Patrangsit Healthcare

Very poor diversification

The 3 months correlation between Ramkhamhaeng and Patrangsit is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ramkhamhaeng Hospital Public and Patrangsit Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patrangsit Healthcare 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 Patrangsit Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patrangsit Healthcare has no effect on the direction of Ramkhamhaeng Hospital i.e., Ramkhamhaeng Hospital and Patrangsit Healthcare go up and down completely randomly.

Pair Corralation between Ramkhamhaeng Hospital and Patrangsit Healthcare

Assuming the 90 days trading horizon Ramkhamhaeng Hospital Public is expected to under-perform the Patrangsit Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Ramkhamhaeng Hospital Public is 1.31 times less risky than Patrangsit Healthcare. The stock trades about -0.21 of its potential returns per unit of risk. The Patrangsit Healthcare Group is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest  1,550  in Patrangsit Healthcare Group on December 2, 2024 and sell it today you would lose (160.00) from holding Patrangsit Healthcare Group or give up 10.32% of portfolio value over 90 days.

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

Ramkhamhaeng Hospital Public  vs.  Patrangsit Healthcare Group

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.

Patrangsit Healthcare

Risk-Adjusted Performance

Very Weak

Over the last 90 days Patrangsit Healthcare Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's technical and fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Ramkhamhaeng Hospital and Patrangsit Healthcare

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

The idea behind Ramkhamhaeng Hospital Public and Patrangsit Healthcare Group 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.