Correlation Between Sanbo Hospital and Chongqing Changan
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By analyzing existing cross correlation between Sanbo Hospital Management and Chongqing Changan Automobile, you can compare the effects of market volatilities on Sanbo Hospital and Chongqing Changan 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 Chongqing Changan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanbo Hospital and Chongqing Changan.
Diversification Opportunities for Sanbo Hospital and Chongqing Changan
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sanbo and Chongqing is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sanbo Hospital Management and Chongqing Changan Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Changan 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 Chongqing Changan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Changan has no effect on the direction of Sanbo Hospital i.e., Sanbo Hospital and Chongqing Changan go up and down completely randomly.
Pair Corralation between Sanbo Hospital and Chongqing Changan
Assuming the 90 days trading horizon Sanbo Hospital Management is expected to under-perform the Chongqing Changan. In addition to that, Sanbo Hospital is 2.69 times more volatile than Chongqing Changan Automobile. It trades about -0.13 of its total potential returns per unit of risk. Chongqing Changan Automobile is currently generating about -0.31 per unit of volatility. If you would invest 1,407 in Chongqing Changan Automobile on October 10, 2024 and sell it today you would lose (140.00) from holding Chongqing Changan Automobile or give up 9.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanbo Hospital Management vs. Chongqing Changan Automobile
Performance |
| Timeline |
| Sanbo Hospital Management |
| Chongqing Changan |
Sanbo Hospital and Chongqing Changan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanbo Hospital and Chongqing Changan
The main advantage of trading using opposite Sanbo Hospital and Chongqing Changan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanbo Hospital position performs unexpectedly, Chongqing Changan 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 Chongqing Changan will offset losses from the drop in Chongqing Changan's long position.| Sanbo Hospital vs. Industrial and Commercial | Sanbo Hospital vs. China Construction Bank | Sanbo Hospital vs. Agricultural Bank of | Sanbo Hospital vs. Bank of China |
| Chongqing Changan vs. Eastroc Beverage Group | Chongqing Changan vs. Chenzhou Jingui Silver | Chongqing Changan vs. JCHX Mining Management | Chongqing Changan vs. Guangxi Wuzhou Communications |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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