Correlation Between Ningxia Younglight and Sanbo Hospital
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Sanbo Hospital Management, you can compare the effects of market volatilities on Ningxia Younglight 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 Ningxia Younglight with a short position of Sanbo Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Sanbo Hospital.
Diversification Opportunities for Ningxia Younglight and Sanbo Hospital
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningxia and Sanbo is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals 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 Ningxia Younglight 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 Ningxia Younglight Chemicals 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 Ningxia Younglight i.e., Ningxia Younglight and Sanbo Hospital go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Sanbo Hospital
Assuming the 90 days trading horizon Ningxia Younglight is expected to generate 1.93 times less return on investment than Sanbo Hospital. But when comparing it to its historical volatility, Ningxia Younglight Chemicals is 1.02 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 4,695 in Sanbo Hospital Management on September 27, 2024 and sell it today you would earn a total of 116.00 from holding Sanbo Hospital Management or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. Sanbo Hospital Management
Performance |
| Timeline |
| Ningxia Younglight |
| Sanbo Hospital Management |
Ningxia Younglight and Sanbo Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Sanbo Hospital
The main advantage of trading using opposite Ningxia Younglight and Sanbo Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight 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.| Ningxia Younglight vs. Zijin Mining Group | Ningxia Younglight vs. Wanhua Chemical Group | Ningxia Younglight vs. Baoshan Iron Steel | Ningxia Younglight vs. Shandong Gold Mining |
| Sanbo Hospital vs. HeBei Jinniu Chemical | Sanbo Hospital vs. Aofu Environmental Technology | Sanbo Hospital vs. Tongxing Environmental Protection | Sanbo Hospital vs. Ningxia Younglight Chemicals |
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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