Correlation Between Rajthanee Hospital and Patrangsit Healthcare

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

Diversification Opportunities for Rajthanee Hospital and Patrangsit Healthcare

0.82

Correlation Coefficient

Rajthanee Hospital  Patrangsit Healthcare

Very poor diversification

The 3 months correlation between Rajthanee and Patrangsit is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Rajthanee 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 Rajthanee 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 Rajthanee 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 Rajthanee Hospital i.e., Rajthanee Hospital and Patrangsit Healthcare go up and down completely randomly.

Pair Corralation between Rajthanee Hospital and Patrangsit Healthcare

Assuming the 90 days trading horizon Rajthanee Hospital Public is expected to under-perform the Patrangsit Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Rajthanee Hospital Public is 44.21 times less risky than Patrangsit Healthcare. The stock trades about -0.05 of its potential returns per unit of risk. The Patrangsit Healthcare Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,568  in Patrangsit Healthcare Group on October 11, 2024 and sell it today you would lose (28.00) from holding Patrangsit Healthcare Group or give up 1.79% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	76.88%
Values	Daily Returns

Rajthanee Hospital Public  vs.  Patrangsit Healthcare Group

Rajthanee Hospital Public

Risk-Adjusted Performance

0 of 100

Very Weak

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

Patrangsit Healthcare

Risk-Adjusted Performance

0 of 100

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 quite persistent technical and fundamental indicators, Patrangsit Healthcare is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Rajthanee Hospital and Patrangsit Healthcare

The main advantage of trading using opposite Rajthanee Hospital and Patrangsit Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rajthanee 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 Rajthanee 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.