Correlation Between Sanbo Hospital and Beijing Bewinner
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By analyzing existing cross correlation between Sanbo Hospital Management and Beijing Bewinner Communications, you can compare the effects of market volatilities on Sanbo Hospital and Beijing Bewinner 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 Beijing Bewinner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanbo Hospital and Beijing Bewinner.
Diversification Opportunities for Sanbo Hospital and Beijing Bewinner
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sanbo and Beijing is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Sanbo Hospital Management and Beijing Bewinner Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bewinner Com 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 Beijing Bewinner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bewinner Com has no effect on the direction of Sanbo Hospital i.e., Sanbo Hospital and Beijing Bewinner go up and down completely randomly.
Pair Corralation between Sanbo Hospital and Beijing Bewinner
Assuming the 90 days trading horizon Sanbo Hospital is expected to generate 5.43 times less return on investment than Beijing Bewinner. But when comparing it to its historical volatility, Sanbo Hospital Management is 1.1 times less risky than Beijing Bewinner. It trades about 0.01 of its potential returns per unit of risk. Beijing Bewinner Communications is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 504.00 in Beijing Bewinner Communications on November 7, 2024 and sell it today you would earn a total of 161.00 from holding Beijing Bewinner Communications or generate 31.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanbo Hospital Management vs. Beijing Bewinner Communication
Performance |
| Timeline |
| Sanbo Hospital Management |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Beijing Bewinner Com |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Sanbo Hospital and Beijing Bewinner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanbo Hospital and Beijing Bewinner
The main advantage of trading using opposite Sanbo Hospital and Beijing Bewinner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanbo Hospital position performs unexpectedly, Beijing Bewinner 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 Beijing Bewinner will offset losses from the drop in Beijing Bewinner's long position.The idea behind Sanbo Hospital Management and Beijing Bewinner Communications pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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