Correlation Between Luolai Home and Sanbo Hospital
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By analyzing existing cross correlation between Luolai Home Textile and Sanbo Hospital Management, you can compare the effects of market volatilities on Luolai Home 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 Luolai Home with a short position of Sanbo Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luolai Home and Sanbo Hospital.
Diversification Opportunities for Luolai Home and Sanbo Hospital
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Luolai and Sanbo is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Luolai Home Textile 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 Luolai Home 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 Luolai Home Textile 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 Luolai Home i.e., Luolai Home and Sanbo Hospital go up and down completely randomly.
Pair Corralation between Luolai Home and Sanbo Hospital
Assuming the 90 days trading horizon Luolai Home Textile is expected to generate 0.54 times more return on investment than Sanbo Hospital. However, Luolai Home Textile is 1.85 times less risky than Sanbo Hospital. It trades about -0.06 of its potential returns per unit of risk. Sanbo Hospital Management is currently generating about -0.12 per unit of risk. If you would invest 862.00 in Luolai Home Textile on October 12, 2024 and sell it today you would lose (29.00) from holding Luolai Home Textile or give up 3.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luolai Home Textile vs. Sanbo Hospital Management
Performance |
| Timeline |
| Luolai Home Textile |
| Sanbo Hospital Management |
Luolai Home and Sanbo Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luolai Home and Sanbo Hospital
The main advantage of trading using opposite Luolai Home and Sanbo Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luolai Home 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.| Luolai Home vs. BYD Co Ltd | Luolai Home vs. China Mobile Limited | Luolai Home vs. Agricultural Bank of | Luolai Home vs. Industrial and Commercial |
| Sanbo Hospital vs. Shanghai Phichem Material | Sanbo Hospital vs. Northern United Publishing | Sanbo Hospital vs. GRIPM Advanced Materials | Sanbo Hospital vs. Duzhe Publishing Media |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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