Correlation Between SANOK RUBBER and National Health
Can any of the company-specific risk be diversified away by investing in both SANOK RUBBER and National Health 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 SANOK RUBBER and National Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANOK RUBBER ZY and National Health Investors, you can compare the effects of market volatilities on SANOK RUBBER and National Health 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 SANOK RUBBER with a short position of National Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANOK RUBBER and National Health.
Diversification Opportunities for SANOK RUBBER and National Health
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between SANOK and National is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding SANOK RUBBER ZY and National Health Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Health Investors and SANOK RUBBER 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 SANOK RUBBER ZY are associated (or correlated) with National Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Health Investors has no effect on the direction of SANOK RUBBER i.e., SANOK RUBBER and National Health go up and down completely randomly.
Pair Corralation between SANOK RUBBER and National Health
Assuming the 90 days horizon SANOK RUBBER ZY is expected to generate 0.95 times more return on investment than National Health. However, SANOK RUBBER ZY is 1.05 times less risky than National Health. It trades about 0.25 of its potential returns per unit of risk. National Health Investors is currently generating about -0.51 per unit of risk. If you would invest 434.00 in SANOK RUBBER ZY on September 22, 2024 and sell it today you would earn a total of 21.00 from holding SANOK RUBBER ZY or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SANOK RUBBER ZY vs. National Health Investors
Performance |
| Timeline |
| SANOK RUBBER ZY |
| National Health Investors |
SANOK RUBBER and National Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANOK RUBBER and National Health
The main advantage of trading using opposite SANOK RUBBER and National Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANOK RUBBER position performs unexpectedly, National Health 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 National Health will offset losses from the drop in National Health's long position.| SANOK RUBBER vs. GFL ENVIRONM | SANOK RUBBER vs. Autohome ADR | SANOK RUBBER vs. Focus Home Interactive | SANOK RUBBER vs. Perma Fix Environmental Services |
| National Health vs. Schweizer Electronic AG | National Health vs. SIDETRADE EO 1 | National Health vs. ARROW ELECTRONICS | National Health vs. American Eagle Outfitters |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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