Correlation Between Sanbo Hospital and Jilin Chemical
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By analyzing existing cross correlation between Sanbo Hospital Management and Jilin Chemical Fibre, you can compare the effects of market volatilities on Sanbo Hospital and Jilin Chemical 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 Sanbo Hospital with a short position of Jilin Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanbo Hospital and Jilin Chemical.
Diversification Opportunities for Sanbo Hospital and Jilin Chemical
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sanbo and Jilin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sanbo Hospital Management and Jilin Chemical Fibre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Chemical Fibre and Sanbo Hospital 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 Sanbo Hospital Management are associated (or correlated) with Jilin Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Chemical Fibre has no effect on the direction of Sanbo Hospital i.e., Sanbo Hospital and Jilin Chemical go up and down completely randomly.
Pair Corralation between Sanbo Hospital and Jilin Chemical
Assuming the 90 days trading horizon Sanbo Hospital Management is expected to generate 1.46 times more return on investment than Jilin Chemical. However, Sanbo Hospital is 1.46 times more volatile than Jilin Chemical Fibre. It trades about 0.03 of its potential returns per unit of risk. Jilin Chemical Fibre is currently generating about 0.01 per unit of risk. If you would invest 3,865 in Sanbo Hospital Management on August 29, 2024 and sell it today you would earn a total of 830.00 from holding Sanbo Hospital Management or generate 21.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanbo Hospital Management vs. Jilin Chemical Fibre
Performance |
| Timeline |
| Sanbo Hospital Management |
| Jilin Chemical Fibre |
Sanbo Hospital and Jilin Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanbo Hospital and Jilin Chemical
The main advantage of trading using opposite Sanbo Hospital and Jilin Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanbo Hospital position performs unexpectedly, Jilin Chemical 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 Jilin Chemical will offset losses from the drop in Jilin Chemical's long position.| Sanbo Hospital vs. Ming Yang Smart | Sanbo Hospital vs. 159681 | Sanbo Hospital vs. 159005 | Sanbo Hospital vs. Loctek Ergonomic Technology |
| Jilin Chemical vs. Zijin Mining Group | Jilin Chemical vs. Wanhua Chemical Group | Jilin Chemical vs. Baoshan Iron Steel | Jilin Chemical vs. Shandong Gold Mining |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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