Correlation Between Beijing Wantai and Sanbo Hospital
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By analyzing existing cross correlation between Beijing Wantai Biological and Sanbo Hospital Management, you can compare the effects of market volatilities on Beijing Wantai 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 Beijing Wantai with a short position of Sanbo Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wantai and Sanbo Hospital.
Diversification Opportunities for Beijing Wantai and Sanbo Hospital
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Sanbo is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wantai Biological 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 Beijing Wantai 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 Beijing Wantai Biological 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 Beijing Wantai i.e., Beijing Wantai and Sanbo Hospital go up and down completely randomly.
Pair Corralation between Beijing Wantai and Sanbo Hospital
Assuming the 90 days trading horizon Beijing Wantai Biological is expected to under-perform the Sanbo Hospital. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Wantai Biological is 1.58 times less risky than Sanbo Hospital. The stock trades about -0.01 of its potential returns per unit of risk. The Sanbo Hospital Management is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,960 in Sanbo Hospital Management on September 3, 2024 and sell it today you would earn a total of 1,760 from holding Sanbo Hospital Management or generate 59.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 80.92% |
| Values | Daily Returns |
Beijing Wantai Biological vs. Sanbo Hospital Management
Performance |
| Timeline |
| Beijing Wantai Biological |
| Sanbo Hospital Management |
Beijing Wantai and Sanbo Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wantai and Sanbo Hospital
The main advantage of trading using opposite Beijing Wantai and Sanbo Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wantai 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.| Beijing Wantai vs. Cofoe Medical Technology | Beijing Wantai vs. Guangzhou Boji Medical | Beijing Wantai vs. Qingdao Baheal Medical | Beijing Wantai vs. Double Medical Technology |
| Sanbo Hospital vs. Chengdu Kanghua Biological | Sanbo Hospital vs. Beijing Wantai Biological | Sanbo Hospital vs. Suzhou Novoprotein Scientific | Sanbo Hospital vs. Aluminum Corp of |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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