Correlation Between VANACHAI GROUP and RATCHAPHRUEK HOSPITAL

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Can any of the company-specific risk be diversified away by investing in both VANACHAI GROUP 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 VANACHAI GROUP and RATCHAPHRUEK HOSPITAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VANACHAI GROUP PUBLIC and RATCHAPHRUEK HOSPITAL PUBLIC, you can compare the effects of market volatilities on VANACHAI GROUP 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 VANACHAI GROUP with a short position of RATCHAPHRUEK HOSPITAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of VANACHAI GROUP and RATCHAPHRUEK HOSPITAL.

Diversification Opportunities for VANACHAI GROUP and RATCHAPHRUEK HOSPITAL

0.16
  Correlation Coefficient

Average diversification

The 3 months correlation between VANACHAI and RATCHAPHRUEK is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding VANACHAI GROUP PUBLIC COMPANY and RATCHAPHRUEK HOSPITAL PUBLIC C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RATCHAPHRUEK HOSPITAL and VANACHAI GROUP 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 VANACHAI GROUP PUBLIC 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 VANACHAI GROUP i.e., VANACHAI GROUP and RATCHAPHRUEK HOSPITAL go up and down completely randomly.

Pair Corralation between VANACHAI GROUP and RATCHAPHRUEK HOSPITAL

Assuming the 90 days trading horizon VANACHAI GROUP PUBLIC is expected to under-perform the RATCHAPHRUEK HOSPITAL. In addition to that, VANACHAI GROUP is 1.08 times more volatile than RATCHAPHRUEK HOSPITAL PUBLIC. It trades about -0.28 of its total potential returns per unit of risk. RATCHAPHRUEK HOSPITAL PUBLIC is currently generating about -0.04 per unit of volatility. If you would invest  631.00  in RATCHAPHRUEK HOSPITAL PUBLIC on July 9, 2022 and sell it today you would lose (21.00)  from holding RATCHAPHRUEK HOSPITAL PUBLIC or give up 3.33% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

VANACHAI GROUP PUBLIC COMPANY   vs.  RATCHAPHRUEK HOSPITAL PUBLIC C

 Performance (%) 
       Timeline  
VANACHAI GROUP PUBLIC 
VANACHAI Performance
0 of 100
Over the last 90 days VANACHAI GROUP PUBLIC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in November 2022. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

VANACHAI Price Channel

RATCHAPHRUEK HOSPITAL 
RATCHAPHRUEK Performance
0 of 100
Over the last 90 days RATCHAPHRUEK HOSPITAL PUBLIC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, RATCHAPHRUEK HOSPITAL is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

RATCHAPHRUEK Price Channel

VANACHAI GROUP and RATCHAPHRUEK HOSPITAL Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with VANACHAI GROUP and RATCHAPHRUEK HOSPITAL

The main advantage of trading using opposite VANACHAI GROUP and RATCHAPHRUEK HOSPITAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VANACHAI GROUP 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.
The idea behind VANACHAI GROUP PUBLIC and RATCHAPHRUEK HOSPITAL 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.
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 Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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