Correlation Between China Everbright and Sanbo Hospital
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By analyzing existing cross correlation between China Everbright Bank and Sanbo Hospital Management, you can compare the effects of market volatilities on China Everbright 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 China Everbright with a short position of Sanbo Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Everbright and Sanbo Hospital.
Diversification Opportunities for China Everbright and Sanbo Hospital
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Sanbo is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding China Everbright Bank 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 China Everbright 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 China Everbright Bank 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 China Everbright i.e., China Everbright and Sanbo Hospital go up and down completely randomly.
Pair Corralation between China Everbright and Sanbo Hospital
Assuming the 90 days trading horizon China Everbright Bank is expected to generate 0.36 times more return on investment than Sanbo Hospital. However, China Everbright Bank is 2.76 times less risky than Sanbo Hospital. It trades about 0.0 of its potential returns per unit of risk. Sanbo Hospital Management is currently generating about -0.12 per unit of risk. If you would invest 369.00 in China Everbright Bank on October 12, 2024 and sell it today you would lose (1.00) from holding China Everbright Bank or give up 0.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Everbright Bank vs. Sanbo Hospital Management
Performance |
| Timeline |
| China Everbright Bank |
| Sanbo Hospital Management |
China Everbright and Sanbo Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Everbright and Sanbo Hospital
The main advantage of trading using opposite China Everbright and Sanbo Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Everbright 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.| China Everbright vs. Penyao Environmental Protection | China Everbright vs. Baoshan Iron Steel | China Everbright vs. Hangzhou Guotai Environmental | China Everbright vs. Porton Fine Chemicals |
| Sanbo Hospital vs. Shanghai Phichem Material | Sanbo Hospital vs. Northern United Publishing | Sanbo Hospital vs. GRIPM Advanced Materials | Sanbo Hospital vs. Duzhe Publishing Media |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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