Correlation Between Northern United and Sanbo Hospital
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By analyzing existing cross correlation between Northern United Publishing and Sanbo Hospital Management, you can compare the effects of market volatilities on Northern United 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 Northern United with a short position of Sanbo Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern United and Sanbo Hospital.
Diversification Opportunities for Northern United and Sanbo Hospital
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Northern and Sanbo is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Northern United Publishing 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 Northern United 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 Northern United Publishing 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 Northern United i.e., Northern United and Sanbo Hospital go up and down completely randomly.
Pair Corralation between Northern United and Sanbo Hospital
Assuming the 90 days trading horizon Northern United is expected to generate 5.87 times less return on investment than Sanbo Hospital. But when comparing it to its historical volatility, Northern United Publishing is 1.4 times less risky than Sanbo Hospital. It trades about 0.01 of its potential returns per unit of risk. Sanbo Hospital Management is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,960 in Sanbo Hospital Management on October 27, 2024 and sell it today you would earn a total of 1,550 from holding Sanbo Hospital Management or generate 52.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 87.97% |
| Values | Daily Returns |
Northern United Publishing vs. Sanbo Hospital Management
Performance |
| Timeline |
| Northern United Publ |
| Sanbo Hospital Management |
Northern United and Sanbo Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern United and Sanbo Hospital
The main advantage of trading using opposite Northern United and Sanbo Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern United 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.| Northern United vs. Shaanxi Construction Machinery | Northern United vs. Lander Sports Development | Northern United vs. Masterwork Machinery | Northern United vs. Hubeiyichang Transportation Group |
| Sanbo Hospital vs. Bank of China | Sanbo Hospital vs. Kweichow Moutai Co | Sanbo Hospital vs. PetroChina Co Ltd | Sanbo Hospital vs. Bank of Communications |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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