Correlation Between Hangzhou Coco and Sanbo Hospital
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By analyzing existing cross correlation between Hangzhou Coco Healthcare and Sanbo Hospital Management, you can compare the effects of market volatilities on Hangzhou Coco 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 Hangzhou Coco with a short position of Sanbo Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Coco and Sanbo Hospital.
Diversification Opportunities for Hangzhou Coco and Sanbo Hospital
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and Sanbo is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Coco Healthcare 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 Hangzhou Coco 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 Hangzhou Coco Healthcare 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 Hangzhou Coco i.e., Hangzhou Coco and Sanbo Hospital go up and down completely randomly.
Pair Corralation between Hangzhou Coco and Sanbo Hospital
Assuming the 90 days trading horizon Hangzhou Coco Healthcare is expected to generate 0.81 times more return on investment than Sanbo Hospital. However, Hangzhou Coco Healthcare is 1.23 times less risky than Sanbo Hospital. It trades about 0.1 of its potential returns per unit of risk. Sanbo Hospital Management is currently generating about -0.18 per unit of risk. If you would invest 942.00 in Hangzhou Coco Healthcare on September 12, 2024 and sell it today you would earn a total of 53.00 from holding Hangzhou Coco Healthcare or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Coco Healthcare vs. Sanbo Hospital Management
Performance |
| Timeline |
| Hangzhou Coco Healthcare |
| Sanbo Hospital Management |
Hangzhou Coco and Sanbo Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Coco and Sanbo Hospital
The main advantage of trading using opposite Hangzhou Coco and Sanbo Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Coco 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.| Hangzhou Coco vs. China Petroleum Chemical | Hangzhou Coco vs. PetroChina Co Ltd | Hangzhou Coco vs. China State Construction | Hangzhou Coco vs. China Railway Group |
| Sanbo Hospital vs. Cultural Investment Holdings | Sanbo Hospital vs. Gome Telecom Equipment | Sanbo Hospital vs. Holitech Technology Co | Sanbo Hospital vs. Zotye Automobile Co |
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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