Correlation Between RPCG Public and Bangkok Chain

Can any of the company-specific risk be diversified away by investing in both RPCG Public and Bangkok Chain 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 RPCG Public and Bangkok Chain into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for RPCG Public and Bangkok Chain

-0.06

Correlation Coefficient

RPCG Public  Bangkok Chain

Good diversification

The 3 months correlation between RPCG and Bangkok is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding RPCG Public and Bangkok Chain Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Chain Hospital and RPCG Public 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 RPCG Public are associated (or correlated) with Bangkok Chain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Chain Hospital has no effect on the direction of RPCG Public i.e., RPCG Public and Bangkok Chain go up and down completely randomly.

Pair Corralation between RPCG Public and Bangkok Chain

Assuming the 90 days trading horizon RPCG Public is expected to generate 1.9 times more return on investment than Bangkok Chain. However, RPCG Public is 1.9 times more volatile than Bangkok Chain Hospital. It trades about 0.05 of its potential returns per unit of risk. Bangkok Chain Hospital is currently generating about -0.08 per unit of risk. If you would invest  27.00  in RPCG Public on April 24, 2025 and sell it today you would earn a total of  2.00  from holding RPCG Public or generate 7.41% return on investment over 90 days.

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

RPCG Public  vs.  Bangkok Chain Hospital

RPCG Public

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in RPCG Public are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental indicators, RPCG Public may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Bangkok Chain Hospital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bangkok Chain Hospital 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 RPCG Public and Bangkok Chain

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

The idea behind RPCG Public and Bangkok Chain Hospital 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.