Correlation Between Shanghai Shuixing and Sanbo Hospital
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By analyzing existing cross correlation between Shanghai Shuixing Home and Sanbo Hospital Management, you can compare the effects of market volatilities on Shanghai Shuixing 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 Shuixing with a short position of Sanbo Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and Sanbo Hospital.
Diversification Opportunities for Shanghai Shuixing and Sanbo Hospital
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and Sanbo is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing 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 Shanghai Shuixing 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 Shuixing 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 Shanghai Shuixing i.e., Shanghai Shuixing and Sanbo Hospital go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and Sanbo Hospital
Assuming the 90 days trading horizon Shanghai Shuixing is expected to generate 3.77 times less return on investment than Sanbo Hospital. But when comparing it to its historical volatility, Shanghai Shuixing Home is 2.01 times less risky than Sanbo Hospital. It trades about 0.02 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 Against |
| Strength | Insignificant |
| Accuracy | 87.97% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. Sanbo Hospital Management
Performance |
| Timeline |
| Shanghai Shuixing Home |
| Sanbo Hospital Management |
Shanghai Shuixing and Sanbo Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and Sanbo Hospital
The main advantage of trading using opposite Shanghai Shuixing and Sanbo Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing 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 Shuixing vs. Sportsoul Co Ltd | Shanghai Shuixing vs. Keda Clean Energy | Shanghai Shuixing vs. Luyin Investment Group | Shanghai Shuixing vs. Xiandai Investment Co |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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