Correlation Between Sanbo Hospital and Shanghai Rightongene
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By analyzing existing cross correlation between Sanbo Hospital Management and Shanghai Rightongene Biotechnology, you can compare the effects of market volatilities on Sanbo Hospital and Shanghai Rightongene 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 Shanghai Rightongene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanbo Hospital and Shanghai Rightongene.
Diversification Opportunities for Sanbo Hospital and Shanghai Rightongene
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sanbo and Shanghai is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Sanbo Hospital Management and Shanghai Rightongene Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rightongene 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 Shanghai Rightongene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rightongene has no effect on the direction of Sanbo Hospital i.e., Sanbo Hospital and Shanghai Rightongene go up and down completely randomly.
Pair Corralation between Sanbo Hospital and Shanghai Rightongene
Assuming the 90 days trading horizon Sanbo Hospital is expected to generate 1.91 times less return on investment than Shanghai Rightongene. In addition to that, Sanbo Hospital is 1.1 times more volatile than Shanghai Rightongene Biotechnology. It trades about 0.17 of its total potential returns per unit of risk. Shanghai Rightongene Biotechnology is currently generating about 0.36 per unit of volatility. If you would invest 1,751 in Shanghai Rightongene Biotechnology on November 6, 2024 and sell it today you would earn a total of 208.00 from holding Shanghai Rightongene Biotechnology or generate 11.88% 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. Shanghai Rightongene Biotechno
Performance |
| Timeline |
| Sanbo Hospital Management |
| Shanghai Rightongene |
Sanbo Hospital and Shanghai Rightongene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanbo Hospital and Shanghai Rightongene
The main advantage of trading using opposite Sanbo Hospital and Shanghai Rightongene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanbo Hospital position performs unexpectedly, Shanghai Rightongene 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 Shanghai Rightongene will offset losses from the drop in Shanghai Rightongene's long position.| Sanbo Hospital vs. China Asset Management | Sanbo Hospital vs. Guangdong Jinma Entertainment | Sanbo Hospital vs. GUOMAI Culture Media | Sanbo Hospital vs. Chengdu B ray Media |
| Shanghai Rightongene vs. Kweichow Moutai Co | Shanghai Rightongene vs. G bits Network Technology | Shanghai Rightongene vs. Anhui Gujing Distillery | Shanghai Rightongene vs. Anhui Gujing Distillery |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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