Correlation Between 159005 and Sanbo Hospital
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By analyzing existing cross correlation between 159005 and Sanbo Hospital Management, you can compare the effects of market volatilities on 159005 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 159005 with a short position of Sanbo Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Sanbo Hospital.
Diversification Opportunities for 159005 and Sanbo Hospital
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159005 and Sanbo is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding 159005 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 159005 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 159005 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 159005 i.e., 159005 and Sanbo Hospital go up and down completely randomly.
Pair Corralation between 159005 and Sanbo Hospital
Assuming the 90 days trading horizon 159005 is expected to generate 25.79 times less return on investment than Sanbo Hospital. But when comparing it to its historical volatility, 159005 is 145.43 times less risky than Sanbo Hospital. It trades about 0.21 of its potential returns per unit of risk. Sanbo Hospital Management is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,329 in Sanbo Hospital Management on August 25, 2024 and sell it today you would earn a total of 72.00 from holding Sanbo Hospital Management or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Sanbo Hospital Management
Performance |
| Timeline |
| 159005 |
| Sanbo Hospital Management |
159005 and Sanbo Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Sanbo Hospital
The main advantage of trading using opposite 159005 and Sanbo Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 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.The idea behind 159005 and Sanbo Hospital Management pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Sanbo Hospital vs. Ming Yang Smart | Sanbo Hospital vs. 159681 | Sanbo Hospital vs. 159005 | Sanbo Hospital vs. Loctek Ergonomic Technology |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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