Correlation Between Sanbo Hospital and Guocheng Mining
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By analyzing existing cross correlation between Sanbo Hospital Management and Guocheng Mining Co, you can compare the effects of market volatilities on Sanbo Hospital and Guocheng Mining 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 Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanbo Hospital and Guocheng Mining.
Diversification Opportunities for Sanbo Hospital and Guocheng Mining
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sanbo and Guocheng is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Sanbo Hospital Management and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining 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 Guocheng Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guocheng Mining has no effect on the direction of Sanbo Hospital i.e., Sanbo Hospital and Guocheng Mining go up and down completely randomly.
Pair Corralation between Sanbo Hospital and Guocheng Mining
Assuming the 90 days trading horizon Sanbo Hospital Management is expected to under-perform the Guocheng Mining. But the stock apears to be less risky and, when comparing its historical volatility, Sanbo Hospital Management is 1.13 times less risky than Guocheng Mining. The stock trades about -0.14 of its potential returns per unit of risk. The Guocheng Mining Co is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 1,379 in Guocheng Mining Co on October 22, 2024 and sell it today you would lose (79.00) from holding Guocheng Mining Co or give up 5.73% 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. Guocheng Mining Co
Performance |
| Timeline |
| Sanbo Hospital Management |
| Guocheng Mining |
Sanbo Hospital and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanbo Hospital and Guocheng Mining
The main advantage of trading using opposite Sanbo Hospital and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanbo Hospital position performs unexpectedly, Guocheng Mining 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 Guocheng Mining will offset losses from the drop in Guocheng Mining's long position.| Sanbo Hospital vs. Runjian Communication Co | Sanbo Hospital vs. Nanjing Putian Telecommunications | Sanbo Hospital vs. Eastern Communications Co | Sanbo Hospital vs. Guocheng Mining Co |
| Guocheng Mining vs. HaiXin Foods Co | Guocheng Mining vs. Tonghua Grape Wine | Guocheng Mining vs. Impulse Qingdao Health | Guocheng Mining vs. New Hope Dairy |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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