Correlation Between Tongxing Environmental and Sanbo Hospital
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By analyzing existing cross correlation between Tongxing Environmental Protection and Sanbo Hospital Management, you can compare the effects of market volatilities on Tongxing Environmental 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 Tongxing Environmental with a short position of Sanbo Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongxing Environmental and Sanbo Hospital.
Diversification Opportunities for Tongxing Environmental and Sanbo Hospital
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tongxing and Sanbo is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Tongxing Environmental Protect 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 Tongxing Environmental 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 Tongxing Environmental Protection 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 Tongxing Environmental i.e., Tongxing Environmental and Sanbo Hospital go up and down completely randomly.
Pair Corralation between Tongxing Environmental and Sanbo Hospital
Assuming the 90 days trading horizon Tongxing Environmental Protection is expected to under-perform the Sanbo Hospital. But the stock apears to be less risky and, when comparing its historical volatility, Tongxing Environmental Protection is 1.02 times less risky than Sanbo Hospital. The stock trades about -0.08 of its potential returns per unit of risk. The 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongxing Environmental Protect vs. Sanbo Hospital Management
Performance |
| Timeline |
| Tongxing Environmental |
| Sanbo Hospital Management |
Tongxing Environmental and Sanbo Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongxing Environmental and Sanbo Hospital
The main advantage of trading using opposite Tongxing Environmental and Sanbo Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongxing Environmental 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.| Tongxing Environmental vs. Ming Yang Smart | Tongxing Environmental vs. 159681 | Tongxing Environmental vs. 159005 | Tongxing Environmental vs. Loctek Ergonomic Technology |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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