Correlation Between Hubei Dinglong and Sanbo Hospital
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By analyzing existing cross correlation between Hubei Dinglong Chemical and Sanbo Hospital Management, you can compare the effects of market volatilities on Hubei Dinglong 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 Hubei Dinglong with a short position of Sanbo Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Dinglong and Sanbo Hospital.
Diversification Opportunities for Hubei Dinglong and Sanbo Hospital
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hubei and Sanbo is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Dinglong Chemical 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 Hubei Dinglong 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 Hubei Dinglong Chemical 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 Hubei Dinglong i.e., Hubei Dinglong and Sanbo Hospital go up and down completely randomly.
Pair Corralation between Hubei Dinglong and Sanbo Hospital
Assuming the 90 days trading horizon Hubei Dinglong is expected to generate 1.08 times less return on investment than Sanbo Hospital. But when comparing it to its historical volatility, Hubei Dinglong Chemical is 1.12 times less risky than Sanbo Hospital. It trades about 0.17 of its potential returns per unit of risk. Sanbo Hospital Management is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 3,095 in Sanbo Hospital Management on August 25, 2024 and sell it today you would earn a total of 1,306 from holding Sanbo Hospital Management or generate 42.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Dinglong Chemical vs. Sanbo Hospital Management
Performance |
| Timeline |
| Hubei Dinglong Chemical |
| Sanbo Hospital Management |
Hubei Dinglong and Sanbo Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Dinglong and Sanbo Hospital
The main advantage of trading using opposite Hubei Dinglong and Sanbo Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Dinglong 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.| Hubei Dinglong vs. Zijin Mining Group | Hubei Dinglong vs. Wanhua Chemical Group | Hubei Dinglong vs. Baoshan Iron Steel | Hubei Dinglong vs. Shandong Gold Mining |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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