Correlation Between Sanbo Hospital and Railway Signal
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By analyzing existing cross correlation between Sanbo Hospital Management and Railway Signal Communication, you can compare the effects of market volatilities on Sanbo Hospital and Railway Signal 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 Railway Signal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanbo Hospital and Railway Signal.
Diversification Opportunities for Sanbo Hospital and Railway Signal
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sanbo and Railway is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sanbo Hospital Management and Railway Signal Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Railway Signal Commu 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 Railway Signal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Railway Signal Commu has no effect on the direction of Sanbo Hospital i.e., Sanbo Hospital and Railway Signal go up and down completely randomly.
Pair Corralation between Sanbo Hospital and Railway Signal
Assuming the 90 days trading horizon Sanbo Hospital Management is expected to under-perform the Railway Signal. In addition to that, Sanbo Hospital is 3.1 times more volatile than Railway Signal Communication. It trades about -0.16 of its total potential returns per unit of risk. Railway Signal Communication is currently generating about -0.16 per unit of volatility. If you would invest 675.00 in Railway Signal Communication on September 13, 2024 and sell it today you would lose (27.00) from holding Railway Signal Communication or give up 4.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanbo Hospital Management vs. Railway Signal Communication
Performance |
| Timeline |
| Sanbo Hospital Management |
| Railway Signal Commu |
Sanbo Hospital and Railway Signal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanbo Hospital and Railway Signal
The main advantage of trading using opposite Sanbo Hospital and Railway Signal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanbo Hospital position performs unexpectedly, Railway Signal 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 Railway Signal will offset losses from the drop in Railway Signal'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 |
| Railway Signal vs. Ming Yang Smart | Railway Signal vs. 159681 | Railway Signal vs. 159005 | Railway Signal vs. Loctek Ergonomic Technology |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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