Correlation Between Sanbo Hospital and Xiangyang Automobile
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By analyzing existing cross correlation between Sanbo Hospital Management and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Sanbo Hospital and Xiangyang Automobile 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 Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanbo Hospital and Xiangyang Automobile.
Diversification Opportunities for Sanbo Hospital and Xiangyang Automobile
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sanbo and Xiangyang is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sanbo Hospital Management and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile 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 Xiangyang Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyang Automobile has no effect on the direction of Sanbo Hospital i.e., Sanbo Hospital and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Sanbo Hospital and Xiangyang Automobile
Assuming the 90 days trading horizon Sanbo Hospital Management is expected to generate 0.8 times more return on investment than Xiangyang Automobile. However, Sanbo Hospital Management is 1.25 times less risky than Xiangyang Automobile. It trades about -0.03 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about -0.03 per unit of risk. If you would invest 4,645 in Sanbo Hospital Management on October 18, 2024 and sell it today you would lose (191.00) from holding Sanbo Hospital Management or give up 4.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanbo Hospital Management vs. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Sanbo Hospital Management |
| Xiangyang Automobile |
Sanbo Hospital and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanbo Hospital and Xiangyang Automobile
The main advantage of trading using opposite Sanbo Hospital and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanbo Hospital position performs unexpectedly, Xiangyang Automobile 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 Xiangyang Automobile will offset losses from the drop in Xiangyang Automobile's long position.| Sanbo Hospital vs. Masterwork Machinery | Sanbo Hospital vs. China Publishing Media | Sanbo Hospital vs. Sinomach General Machinery | Sanbo Hospital vs. Beijing Enlight Media |
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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