Correlation Between Sanbo Hospital and Shandong Longquan
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By analyzing existing cross correlation between Sanbo Hospital Management and Shandong Longquan Pipeline, you can compare the effects of market volatilities on Sanbo Hospital and Shandong Longquan 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 Shandong Longquan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanbo Hospital and Shandong Longquan.
Diversification Opportunities for Sanbo Hospital and Shandong Longquan
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sanbo and Shandong is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Sanbo Hospital Management and Shandong Longquan Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Longquan 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 Shandong Longquan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Longquan has no effect on the direction of Sanbo Hospital i.e., Sanbo Hospital and Shandong Longquan go up and down completely randomly.
Pair Corralation between Sanbo Hospital and Shandong Longquan
Assuming the 90 days trading horizon Sanbo Hospital Management is expected to generate 1.6 times more return on investment than Shandong Longquan. However, Sanbo Hospital is 1.6 times more volatile than Shandong Longquan Pipeline. It trades about 0.05 of its potential returns per unit of risk. Shandong Longquan Pipeline is currently generating about 0.02 per unit of risk. If you would invest 2,960 in Sanbo Hospital Management on August 31, 2024 and sell it today you would earn a total of 1,680 from holding Sanbo Hospital Management or generate 56.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 83.84% |
| Values | Daily Returns |
Sanbo Hospital Management vs. Shandong Longquan Pipeline
Performance |
| Timeline |
| Sanbo Hospital Management |
| Shandong Longquan |
Sanbo Hospital and Shandong Longquan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanbo Hospital and Shandong Longquan
The main advantage of trading using opposite Sanbo Hospital and Shandong Longquan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanbo Hospital position performs unexpectedly, Shandong Longquan 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 Shandong Longquan will offset losses from the drop in Shandong Longquan's long position.| Sanbo Hospital vs. PetroChina Co Ltd | Sanbo Hospital vs. China Mobile Limited | Sanbo Hospital vs. Ping An Insurance | Sanbo Hospital vs. China Petroleum Chemical |
| Shandong Longquan vs. Chison Medical Technologies | Shandong Longquan vs. Miracll Chemicals Co | Shandong Longquan vs. Dhc Software Co | Shandong Longquan vs. Guangzhou Boji Medical |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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