Correlation Between Sanbo Hospital and Guangzhou Automobile
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By analyzing existing cross correlation between Sanbo Hospital Management and Guangzhou Automobile Group, you can compare the effects of market volatilities on Sanbo Hospital and Guangzhou Automobile 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 Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanbo Hospital and Guangzhou Automobile.
Diversification Opportunities for Sanbo Hospital and Guangzhou Automobile
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sanbo and Guangzhou is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Sanbo Hospital Management and Guangzhou Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Automobile 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 Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Automobile has no effect on the direction of Sanbo Hospital i.e., Sanbo Hospital and Guangzhou Automobile go up and down completely randomly.
Pair Corralation between Sanbo Hospital and Guangzhou Automobile
Assuming the 90 days trading horizon Sanbo Hospital is expected to generate 2.92 times less return on investment than Guangzhou Automobile. In addition to that, Sanbo Hospital is 1.09 times more volatile than Guangzhou Automobile Group. It trades about 0.05 of its total potential returns per unit of risk. Guangzhou Automobile Group is currently generating about 0.15 per unit of volatility. If you would invest 853.00 in Guangzhou Automobile Group on September 27, 2024 and sell it today you would earn a total of 94.00 from holding Guangzhou Automobile Group or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanbo Hospital Management vs. Guangzhou Automobile Group
Performance |
| Timeline |
| Sanbo Hospital Management |
| Guangzhou Automobile |
Sanbo Hospital and Guangzhou Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanbo Hospital and Guangzhou Automobile
The main advantage of trading using opposite Sanbo Hospital and Guangzhou Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanbo Hospital position performs unexpectedly, Guangzhou Automobile 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 Automobile will offset losses from the drop in Guangzhou Automobile's long position.| Sanbo Hospital vs. HeBei Jinniu Chemical | Sanbo Hospital vs. Aofu Environmental Technology | Sanbo Hospital vs. Tongxing Environmental Protection | Sanbo Hospital vs. Ningxia Younglight Chemicals |
| Guangzhou Automobile vs. New China Life | Guangzhou Automobile vs. Ming Yang Smart | Guangzhou Automobile vs. 159681 | Guangzhou Automobile vs. 159005 |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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