Correlation Between Rajthanee Hospital and RB FOOD

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

Diversification Opportunities for Rajthanee Hospital and RB FOOD

-0.28

Correlation Coefficient

Rajthanee Hospital  RB FOOD

Very good diversification

The 3 months correlation between Rajthanee and RBF-R is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Rajthanee Hospital Public and RB FOOD SUPPLY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RB FOOD SUPPLY 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 RB FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RB FOOD SUPPLY has no effect on the direction of Rajthanee Hospital i.e., Rajthanee Hospital and RB FOOD go up and down completely randomly.

Pair Corralation between Rajthanee Hospital and RB FOOD

Assuming the 90 days trading horizon Rajthanee Hospital Public is expected to generate 0.47 times more return on investment than RB FOOD. However, Rajthanee Hospital Public is 2.13 times less risky than RB FOOD. It trades about 0.03 of its potential returns per unit of risk. RB FOOD SUPPLY is currently generating about -0.04 per unit of risk. If you would invest  1,320  in Rajthanee Hospital Public on April 24, 2025 and sell it today you would earn a total of  40.00  from holding Rajthanee Hospital Public or generate 3.03% return on investment over 90 days.

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

Rajthanee Hospital Public  vs.  RB FOOD SUPPLY

Rajthanee Hospital Public

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Rajthanee Hospital Public are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent technical indicators, Rajthanee Hospital is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

RB FOOD SUPPLY

Risk-Adjusted Performance

Very Weak

Over the last 90 days RB FOOD SUPPLY has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Rajthanee Hospital and RB FOOD

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

The idea behind Rajthanee Hospital Public and RB FOOD SUPPLY 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .