Correlation Between Shanghai Rongtai and Sanbo Hospital
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By analyzing existing cross correlation between Shanghai Rongtai Health and Sanbo Hospital Management, you can compare the effects of market volatilities on Shanghai Rongtai 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 Rongtai with a short position of Sanbo Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rongtai and Sanbo Hospital.
Diversification Opportunities for Shanghai Rongtai and Sanbo Hospital
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Sanbo is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rongtai Health 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 Rongtai 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 Rongtai Health 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 Rongtai i.e., Shanghai Rongtai and Sanbo Hospital go up and down completely randomly.
Pair Corralation between Shanghai Rongtai and Sanbo Hospital
Assuming the 90 days trading horizon Shanghai Rongtai Health is expected to generate 0.45 times more return on investment than Sanbo Hospital. However, Shanghai Rongtai Health is 2.22 times less risky than Sanbo Hospital. It trades about 0.18 of its potential returns per unit of risk. Sanbo Hospital Management is currently generating about 0.08 per unit of risk. If you would invest 1,389 in Shanghai Rongtai Health on September 1, 2024 and sell it today you would earn a total of 97.00 from holding Shanghai Rongtai Health or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rongtai Health vs. Sanbo Hospital Management
Performance |
| Timeline |
| Shanghai Rongtai Health |
| Sanbo Hospital Management |
Shanghai Rongtai and Sanbo Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rongtai and Sanbo Hospital
The main advantage of trading using opposite Shanghai Rongtai and Sanbo Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rongtai 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 Rongtai vs. Hongrun Construction Group | Shanghai Rongtai vs. Tengda Construction Group | Shanghai Rongtai vs. Xiangyang Automobile Bearing | Shanghai Rongtai vs. Chongqing Changan Automobile |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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