Correlation Between StShine Optical and Pacific Hospital
Can any of the company-specific risk be diversified away by investing in both StShine Optical and Pacific Hospital at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining StShine Optical and Pacific Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between StShine Optical Co and Pacific Hospital Supply, you can compare the effects of market volatilities on StShine Optical and Pacific 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 StShine Optical with a short position of Pacific Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of StShine Optical and Pacific Hospital.
Diversification Opportunities for StShine Optical and Pacific Hospital
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between StShine and Pacific is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding StShine Optical Co and Pacific Hospital Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Hospital Supply and StShine Optical 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 StShine Optical Co are associated (or correlated) with Pacific Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Hospital Supply has no effect on the direction of StShine Optical i.e., StShine Optical and Pacific Hospital go up and down completely randomly.
Pair Corralation between StShine Optical and Pacific Hospital
Assuming the 90 days trading horizon StShine Optical Co is expected to generate 2.39 times more return on investment than Pacific Hospital. However, StShine Optical is 2.39 times more volatile than Pacific Hospital Supply. It trades about 0.12 of its potential returns per unit of risk. Pacific Hospital Supply is currently generating about 0.03 per unit of risk. If you would invest 17,594 in StShine Optical Co on August 29, 2024 and sell it today you would earn a total of 4,856 from holding StShine Optical Co or generate 27.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
StShine Optical Co vs. Pacific Hospital Supply
Performance |
| Timeline |
| StShine Optical |
| Pacific Hospital Supply |
StShine Optical and Pacific Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with StShine Optical and Pacific Hospital
The main advantage of trading using opposite StShine Optical and Pacific Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StShine Optical position performs unexpectedly, Pacific 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 Pacific Hospital will offset losses from the drop in Pacific Hospital's long position.| StShine Optical vs. Sinphar Pharmaceutical Co | StShine Optical vs. Grape King Bio | StShine Optical vs. Apex Biotechnology Corp | StShine Optical vs. Leatec Fine Ceramics |
| Pacific Hospital vs. Universal Vision Biotechnology | Pacific Hospital vs. Excelsior Medical Co | Pacific Hospital vs. Delta Asia International | Pacific Hospital vs. Hi Clearance |
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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