Correlation Between Qingdao Foods and Sanbo Hospital
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By analyzing existing cross correlation between Qingdao Foods Co and Sanbo Hospital Management, you can compare the effects of market volatilities on Qingdao Foods 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 Qingdao Foods with a short position of Sanbo Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and Sanbo Hospital.
Diversification Opportunities for Qingdao Foods and Sanbo Hospital
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Sanbo is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co 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 Qingdao Foods 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 Qingdao Foods Co 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 Qingdao Foods i.e., Qingdao Foods and Sanbo Hospital go up and down completely randomly.
Pair Corralation between Qingdao Foods and Sanbo Hospital
Assuming the 90 days trading horizon Qingdao Foods Co is expected to generate 0.7 times more return on investment than Sanbo Hospital. However, Qingdao Foods Co is 1.42 times less risky than Sanbo Hospital. It trades about 0.01 of its potential returns per unit of risk. Sanbo Hospital Management is currently generating about -0.01 per unit of risk. If you would invest 1,318 in Qingdao Foods Co on October 16, 2024 and sell it today you would lose (34.00) from holding Qingdao Foods Co or give up 2.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Foods Co vs. Sanbo Hospital Management
Performance |
| Timeline |
| Qingdao Foods |
| Sanbo Hospital Management |
Qingdao Foods and Sanbo Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Foods and Sanbo Hospital
The main advantage of trading using opposite Qingdao Foods and Sanbo Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods 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.| Qingdao Foods vs. Unisplendour Corp | Qingdao Foods vs. Strait Innovation Internet | Qingdao Foods vs. Wuhan Yangtze Communication | Qingdao Foods vs. Jonjee Hi tech Industrial |
| Sanbo Hospital vs. Qingdao Foods Co | Sanbo Hospital vs. Sunwave Communications Co | Sanbo Hospital vs. Yankershop Food Co | Sanbo Hospital vs. Anji Foodstuff Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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