Correlation Between Sanbo Hospital and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Sanbo Hospital Management and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Sanbo Hospital and Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanbo Hospital and Fiberhome Telecommunicatio.
Diversification Opportunities for Sanbo Hospital and Fiberhome Telecommunicatio
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sanbo and Fiberhome is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Sanbo Hospital Management and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiberhome Telecommunicatio has no effect on the direction of Sanbo Hospital i.e., Sanbo Hospital and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Sanbo Hospital and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Sanbo Hospital Management is expected to generate 1.59 times more return on investment than Fiberhome Telecommunicatio. However, Sanbo Hospital is 1.59 times more volatile than Fiberhome Telecommunication Technologies. It trades about 0.04 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about 0.04 per unit of risk. If you would invest 2,960 in Sanbo Hospital Management on October 27, 2024 and sell it today you would earn a total of 1,550 from holding Sanbo Hospital Management or generate 52.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 87.97% |
| Values | Daily Returns |
Sanbo Hospital Management vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Sanbo Hospital Management |
| Fiberhome Telecommunicatio |
Sanbo Hospital and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanbo Hospital and Fiberhome Telecommunicatio
The main advantage of trading using opposite Sanbo Hospital and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanbo Hospital position performs unexpectedly, Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio will offset losses from the drop in Fiberhome Telecommunicatio's long position.| Sanbo Hospital vs. Bank of China | Sanbo Hospital vs. Kweichow Moutai Co | Sanbo Hospital vs. PetroChina Co Ltd | Sanbo Hospital vs. Bank of Communications |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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