Correlation Between Sanbo Hospital and China Life
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By analyzing existing cross correlation between Sanbo Hospital Management and China Life Insurance, you can compare the effects of market volatilities on Sanbo Hospital and China Life 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 China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanbo Hospital and China Life.
Diversification Opportunities for Sanbo Hospital and China Life
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sanbo and China is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sanbo Hospital Management and China Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Life Insurance 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 China Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Life Insurance has no effect on the direction of Sanbo Hospital i.e., Sanbo Hospital and China Life go up and down completely randomly.
Pair Corralation between Sanbo Hospital and China Life
Assuming the 90 days trading horizon Sanbo Hospital Management is expected to generate 2.26 times more return on investment than China Life. However, Sanbo Hospital is 2.26 times more volatile than China Life Insurance. It trades about -0.13 of its potential returns per unit of risk. China Life Insurance is currently generating about -0.34 per unit of risk. If you would invest 4,976 in Sanbo Hospital Management on October 11, 2024 and sell it today you would lose (645.00) from holding Sanbo Hospital Management or give up 12.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanbo Hospital Management vs. China Life Insurance
Performance |
| Timeline |
| Sanbo Hospital Management |
| China Life Insurance |
Sanbo Hospital and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanbo Hospital and China Life
The main advantage of trading using opposite Sanbo Hospital and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanbo Hospital position performs unexpectedly, China Life 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 China Life will offset losses from the drop in China Life's long position.| Sanbo Hospital vs. Shanghai Phichem Material | Sanbo Hospital vs. Northern United Publishing | Sanbo Hospital vs. GRIPM Advanced Materials | Sanbo Hospital vs. Duzhe Publishing Media |
| China Life vs. Sanbo Hospital Management | China Life vs. China Reform Health | China Life vs. Sinomach General Machinery | China Life vs. Jinlong Machinery Electronic |
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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