Correlation Between Sanbo Hospital and Guangzhou Ruoyuchen
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By analyzing existing cross correlation between Sanbo Hospital Management and Guangzhou Ruoyuchen Information, you can compare the effects of market volatilities on Sanbo Hospital and Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanbo Hospital and Guangzhou Ruoyuchen.
Diversification Opportunities for Sanbo Hospital and Guangzhou Ruoyuchen
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sanbo and Guangzhou is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sanbo Hospital Management and Guangzhou Ruoyuchen Informatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Ruoyuchen has no effect on the direction of Sanbo Hospital i.e., Sanbo Hospital and Guangzhou Ruoyuchen go up and down completely randomly.
Pair Corralation between Sanbo Hospital and Guangzhou Ruoyuchen
Assuming the 90 days trading horizon Sanbo Hospital is expected to generate 1.01 times less return on investment than Guangzhou Ruoyuchen. But when comparing it to its historical volatility, Sanbo Hospital Management is 1.85 times less risky than Guangzhou Ruoyuchen. It trades about 0.17 of its potential returns per unit of risk. Guangzhou Ruoyuchen Information is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,592 in Guangzhou Ruoyuchen Information on November 6, 2024 and sell it today you would earn a total of 130.00 from holding Guangzhou Ruoyuchen Information or generate 5.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanbo Hospital Management vs. Guangzhou Ruoyuchen Informatio
Performance |
| Timeline |
| Sanbo Hospital Management |
| Guangzhou Ruoyuchen |
Sanbo Hospital and Guangzhou Ruoyuchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanbo Hospital and Guangzhou Ruoyuchen
The main advantage of trading using opposite Sanbo Hospital and Guangzhou Ruoyuchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanbo Hospital position performs unexpectedly, Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen will offset losses from the drop in Guangzhou Ruoyuchen's long position.| Sanbo Hospital vs. China Longyuan Power | Sanbo Hospital vs. PetroChina Co Ltd | Sanbo Hospital vs. Guangxi Guiguan Electric | Sanbo Hospital vs. Yantai North Andre |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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