Correlation Between Bank of China and Sanbo Hospital
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By analyzing existing cross correlation between Bank of China and Sanbo Hospital Management, you can compare the effects of market volatilities on Bank of China 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 Bank of China with a short position of Sanbo Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Sanbo Hospital.
Diversification Opportunities for Bank of China and Sanbo Hospital
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Sanbo is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China 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 Bank of China 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 Bank of China 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 Bank of China i.e., Bank of China and Sanbo Hospital go up and down completely randomly.
Pair Corralation between Bank of China and Sanbo Hospital
Assuming the 90 days trading horizon Bank of China is expected to generate 1.77 times less return on investment than Sanbo Hospital. But when comparing it to its historical volatility, Bank of China is 4.31 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 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,478 in Sanbo Hospital Management on September 1, 2024 and sell it today you would earn a total of 242.00 from holding Sanbo Hospital Management or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Sanbo Hospital Management
Performance |
| Timeline |
| Bank of China |
| Sanbo Hospital Management |
Bank of China and Sanbo Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Sanbo Hospital
The main advantage of trading using opposite Bank of China and Sanbo Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China 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.| Bank of China vs. China Minmetals Rare | Bank of China vs. China Eastern Airlines | Bank of China vs. Metro Investment Development | Bank of China vs. Cultural Investment Holdings |
| Sanbo Hospital vs. Shenzhen MYS Environmental | Sanbo Hospital vs. AVIC Fund Management | Sanbo Hospital vs. Shenzhen Bingchuan Network | Sanbo Hospital vs. Penghua Shenzhen Energy |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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