Correlation Between Sanbo Hospital and Beijing Baolande
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By analyzing existing cross correlation between Sanbo Hospital Management and Beijing Baolande Software, you can compare the effects of market volatilities on Sanbo Hospital and Beijing Baolande 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 Beijing Baolande. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanbo Hospital and Beijing Baolande.
Diversification Opportunities for Sanbo Hospital and Beijing Baolande
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sanbo and Beijing is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Sanbo Hospital Management and Beijing Baolande Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Baolande Software 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 Beijing Baolande. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Baolande Software has no effect on the direction of Sanbo Hospital i.e., Sanbo Hospital and Beijing Baolande go up and down completely randomly.
Pair Corralation between Sanbo Hospital and Beijing Baolande
Assuming the 90 days trading horizon Sanbo Hospital Management is expected to generate 1.11 times more return on investment than Beijing Baolande. However, Sanbo Hospital is 1.11 times more volatile than Beijing Baolande Software. It trades about 0.04 of its potential returns per unit of risk. Beijing Baolande Software is currently generating about -0.01 per unit of risk. If you would invest 2,960 in Sanbo Hospital Management on October 11, 2024 and sell it today you would earn a total of 1,371 from holding Sanbo Hospital Management or generate 46.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.58% |
| Values | Daily Returns |
Sanbo Hospital Management vs. Beijing Baolande Software
Performance |
| Timeline |
| Sanbo Hospital Management |
| Beijing Baolande Software |
Sanbo Hospital and Beijing Baolande Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanbo Hospital and Beijing Baolande
The main advantage of trading using opposite Sanbo Hospital and Beijing Baolande positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanbo Hospital position performs unexpectedly, Beijing Baolande 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 Beijing Baolande will offset losses from the drop in Beijing Baolande'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 |
| Beijing Baolande vs. Fiberhome Telecommunication Technologies | Beijing Baolande vs. Ningbo Homelink Eco iTech | Beijing Baolande vs. Sanbo Hospital Management | Beijing Baolande vs. Luolai Home Textile |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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