Correlation Between Shanghai Jinfeng and Sanbo Hospital
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By analyzing existing cross correlation between Shanghai Jinfeng Wine and Sanbo Hospital Management, you can compare the effects of market volatilities on Shanghai Jinfeng and Sanbo Hospital 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 Shanghai Jinfeng with a short position of Sanbo Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and Sanbo Hospital.
Diversification Opportunities for Shanghai Jinfeng and Sanbo Hospital
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Sanbo is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng Wine and Sanbo Hospital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanbo Hospital Management and Shanghai Jinfeng 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 Shanghai Jinfeng Wine are associated (or correlated) with Sanbo Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanbo Hospital Management has no effect on the direction of Shanghai Jinfeng i.e., Shanghai Jinfeng and Sanbo Hospital go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and Sanbo Hospital
Assuming the 90 days trading horizon Shanghai Jinfeng is expected to generate 1.37 times less return on investment than Sanbo Hospital. But when comparing it to its historical volatility, Shanghai Jinfeng Wine is 1.47 times less risky than Sanbo Hospital. It trades about 0.19 of its potential returns per unit of risk. Sanbo Hospital Management is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 3,186 in Sanbo Hospital Management on September 2, 2024 and sell it today you would earn a total of 1,534 from holding Sanbo Hospital Management or generate 48.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Jinfeng Wine vs. Sanbo Hospital Management
Performance |
| Timeline |
| Shanghai Jinfeng Wine |
| Sanbo Hospital Management |
Shanghai Jinfeng and Sanbo Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jinfeng and Sanbo Hospital
The main advantage of trading using opposite Shanghai Jinfeng and Sanbo Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng position performs unexpectedly, Sanbo Hospital 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 Sanbo Hospital will offset losses from the drop in Sanbo Hospital's long position.| Shanghai Jinfeng vs. China Petroleum Chemical | Shanghai Jinfeng vs. PetroChina Co Ltd | Shanghai Jinfeng vs. China State Construction | Shanghai Jinfeng vs. China Railway Group |
| Sanbo Hospital vs. Shanghai Rongtai Health | Sanbo Hospital vs. Tsingtao Brewery Co | Sanbo Hospital vs. Dezhan HealthCare Co | Sanbo Hospital vs. Meinian Onehealth Healthcare |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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