Correlation Between Nanjing OLO and Sanbo Hospital
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By analyzing existing cross correlation between Nanjing OLO Home and Sanbo Hospital Management, you can compare the effects of market volatilities on Nanjing OLO 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 Nanjing OLO with a short position of Sanbo Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing OLO and Sanbo Hospital.
Diversification Opportunities for Nanjing OLO and Sanbo Hospital
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanjing and Sanbo is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing OLO Home 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 Nanjing OLO 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 Nanjing OLO Home 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 Nanjing OLO i.e., Nanjing OLO and Sanbo Hospital go up and down completely randomly.
Pair Corralation between Nanjing OLO and Sanbo Hospital
Assuming the 90 days trading horizon Nanjing OLO Home is expected to under-perform the Sanbo Hospital. But the stock apears to be less risky and, when comparing its historical volatility, Nanjing OLO Home is 1.07 times less risky than Sanbo Hospital. The stock trades about -0.05 of its potential returns per unit of risk. The Sanbo Hospital Management is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 4,720 in Sanbo Hospital Management on October 30, 2024 and sell it today you would lose (320.00) from holding Sanbo Hospital Management or give up 6.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing OLO Home vs. Sanbo Hospital Management
Performance |
| Timeline |
| Nanjing OLO Home |
| Sanbo Hospital Management |
Nanjing OLO and Sanbo Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing OLO and Sanbo Hospital
The main advantage of trading using opposite Nanjing OLO and Sanbo Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing OLO 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.| Nanjing OLO vs. Shenzhen Centralcon Investment | Nanjing OLO vs. Sanbo Hospital Management | Nanjing OLO vs. Harbin Air Conditioning | Nanjing OLO vs. China Eastern Airlines |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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