Correlation Between Sanbo Hospital and AVIC Heavy
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By analyzing existing cross correlation between Sanbo Hospital Management and AVIC Heavy Machinery, you can compare the effects of market volatilities on Sanbo Hospital and AVIC Heavy 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 AVIC Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanbo Hospital and AVIC Heavy.
Diversification Opportunities for Sanbo Hospital and AVIC Heavy
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sanbo and AVIC is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sanbo Hospital Management and AVIC Heavy Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVIC Heavy Machinery 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 AVIC Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVIC Heavy Machinery has no effect on the direction of Sanbo Hospital i.e., Sanbo Hospital and AVIC Heavy go up and down completely randomly.
Pair Corralation between Sanbo Hospital and AVIC Heavy
Assuming the 90 days trading horizon Sanbo Hospital Management is expected to generate 1.81 times more return on investment than AVIC Heavy. However, Sanbo Hospital is 1.81 times more volatile than AVIC Heavy Machinery. It trades about 0.04 of its potential returns per unit of risk. AVIC Heavy Machinery is currently generating about -0.03 per unit of risk. If you would invest 2,960 in Sanbo Hospital Management on October 31, 2024 and sell it today you would earn a total of 1,440 from holding Sanbo Hospital Management or generate 48.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 88.57% |
| Values | Daily Returns |
Sanbo Hospital Management vs. AVIC Heavy Machinery
Performance |
| Timeline |
| Sanbo Hospital Management |
| AVIC Heavy Machinery |
Sanbo Hospital and AVIC Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanbo Hospital and AVIC Heavy
The main advantage of trading using opposite Sanbo Hospital and AVIC Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanbo Hospital position performs unexpectedly, AVIC Heavy 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 AVIC Heavy will offset losses from the drop in AVIC Heavy's long position.| Sanbo Hospital vs. Kailong High Technology | Sanbo Hospital vs. Songz Automobile Air | Sanbo Hospital vs. Cabio Biotech Wuhan | Sanbo Hospital vs. Sinomach Automobile Co |
| AVIC Heavy vs. PetroChina Co Ltd | AVIC Heavy vs. Industrial and Commercial | AVIC Heavy vs. China Petroleum Chemical | AVIC Heavy vs. China Construction Bank |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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