Correlation Between Sanbo Hospital and Zhengzhou Coal
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By analyzing existing cross correlation between Sanbo Hospital Management and Zhengzhou Coal Mining, you can compare the effects of market volatilities on Sanbo Hospital and Zhengzhou Coal 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 Zhengzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanbo Hospital and Zhengzhou Coal.
Diversification Opportunities for Sanbo Hospital and Zhengzhou Coal
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sanbo and Zhengzhou is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Sanbo Hospital Management and Zhengzhou Coal Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Coal Mining 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 Zhengzhou Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Coal Mining has no effect on the direction of Sanbo Hospital i.e., Sanbo Hospital and Zhengzhou Coal go up and down completely randomly.
Pair Corralation between Sanbo Hospital and Zhengzhou Coal
Assuming the 90 days trading horizon Sanbo Hospital Management is expected to under-perform the Zhengzhou Coal. In addition to that, Sanbo Hospital is 2.26 times more volatile than Zhengzhou Coal Mining. It trades about -0.08 of its total potential returns per unit of risk. Zhengzhou Coal Mining is currently generating about -0.08 per unit of volatility. If you would invest 1,329 in Zhengzhou Coal Mining on September 15, 2024 and sell it today you would lose (36.00) from holding Zhengzhou Coal Mining or give up 2.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanbo Hospital Management vs. Zhengzhou Coal Mining
Performance |
| Timeline |
| Sanbo Hospital Management |
| Zhengzhou Coal Mining |
Sanbo Hospital and Zhengzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanbo Hospital and Zhengzhou Coal
The main advantage of trading using opposite Sanbo Hospital and Zhengzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanbo Hospital position performs unexpectedly, Zhengzhou Coal 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 Zhengzhou Coal will offset losses from the drop in Zhengzhou Coal's long position.| Sanbo Hospital vs. Shenzhen MYS Environmental | Sanbo Hospital vs. AVIC Fund Management | Sanbo Hospital vs. Shenzhen Bingchuan Network | Sanbo Hospital vs. Penghua Shenzhen Energy |
| Zhengzhou Coal vs. Sanbo Hospital Management | Zhengzhou Coal vs. China National Software | Zhengzhou Coal vs. Beijing Yanjing Brewery | Zhengzhou Coal vs. Shanghai Rongtai Health |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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