Correlation Between China Reform and Sanbo Hospital
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By analyzing existing cross correlation between China Reform Health and Sanbo Hospital Management, you can compare the effects of market volatilities on China Reform and Sanbo 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 China Reform with a short position of Sanbo Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Reform and Sanbo Hospital.
Diversification Opportunities for China Reform and Sanbo Hospital
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Sanbo is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Reform Health and Sanbo Hospital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanbo Hospital Management and China Reform 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 China Reform Health are associated (or correlated) with Sanbo Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanbo Hospital Management has no effect on the direction of China Reform i.e., China Reform and Sanbo Hospital go up and down completely randomly.
Pair Corralation between China Reform and Sanbo Hospital
Assuming the 90 days trading horizon China Reform is expected to generate 3.03 times less return on investment than Sanbo Hospital. But when comparing it to its historical volatility, China Reform Health is 1.41 times less risky than Sanbo Hospital. It trades about 0.02 of its potential returns per unit of risk. Sanbo Hospital Management is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,960 in Sanbo Hospital Management on August 29, 2024 and sell it today you would earn a total of 1,735 from holding Sanbo Hospital Management or generate 58.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 80.29% |
| Values | Daily Returns |
China Reform Health vs. Sanbo Hospital Management
Performance |
| Timeline |
| China Reform Health |
| Sanbo Hospital Management |
China Reform and Sanbo Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Reform and Sanbo Hospital
The main advantage of trading using opposite China Reform and Sanbo Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Reform position performs unexpectedly, Sanbo 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 Sanbo Hospital will offset losses from the drop in Sanbo Hospital's long position.| China Reform vs. Industrial and Commercial | China Reform vs. China Construction Bank | China Reform vs. Agricultural Bank of | China Reform vs. Bank of China |
| Sanbo Hospital vs. Industrial and Commercial | Sanbo Hospital vs. China Construction Bank | Sanbo Hospital vs. Agricultural Bank of | Sanbo Hospital vs. Bank of China |
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 the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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