Correlation Between Touchstone International and Sanbo Hospital
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By analyzing existing cross correlation between Touchstone International Medical and Sanbo Hospital Management, you can compare the effects of market volatilities on Touchstone International 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 Touchstone International with a short position of Sanbo Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone International and Sanbo Hospital.
Diversification Opportunities for Touchstone International and Sanbo Hospital
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Touchstone and Sanbo is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone International Medic 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 Touchstone International 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 Touchstone International Medical 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 Touchstone International i.e., Touchstone International and Sanbo Hospital go up and down completely randomly.
Pair Corralation between Touchstone International and Sanbo Hospital
Assuming the 90 days trading horizon Touchstone International is expected to generate 1.08 times less return on investment than Sanbo Hospital. But when comparing it to its historical volatility, Touchstone International Medical is 1.78 times less risky than Sanbo Hospital. It trades about 0.07 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 4,565 in Sanbo Hospital Management on August 30, 2024 and sell it today you would earn a total of 101.00 from holding Sanbo Hospital Management or generate 2.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone International Medic vs. Sanbo Hospital Management
Performance |
| Timeline |
| Touchstone International |
| Sanbo Hospital Management |
Touchstone International and Sanbo Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone International and Sanbo Hospital
The main advantage of trading using opposite Touchstone International and Sanbo Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone International 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.| Touchstone International vs. Industrial and Commercial | Touchstone International vs. China Construction Bank | Touchstone International vs. Agricultural Bank of | Touchstone International vs. Bank of China |
| Sanbo Hospital vs. Industrial and Commercial | Sanbo Hospital vs. China Construction Bank | Sanbo Hospital vs. Agricultural Bank of | Sanbo Hospital vs. Bank of China |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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