Correlation Between Aofu Environmental and Sanbo Hospital
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By analyzing existing cross correlation between Aofu Environmental Technology and Sanbo Hospital Management, you can compare the effects of market volatilities on Aofu Environmental 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 Aofu Environmental with a short position of Sanbo Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aofu Environmental and Sanbo Hospital.
Diversification Opportunities for Aofu Environmental and Sanbo Hospital
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aofu and Sanbo is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Aofu Environmental Technology 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 Aofu Environmental 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 Aofu Environmental Technology 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 Aofu Environmental i.e., Aofu Environmental and Sanbo Hospital go up and down completely randomly.
Pair Corralation between Aofu Environmental and Sanbo Hospital
Assuming the 90 days trading horizon Aofu Environmental Technology is expected to under-perform the Sanbo Hospital. But the stock apears to be less risky and, when comparing its historical volatility, Aofu Environmental Technology is 1.37 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 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,960 in Sanbo Hospital Management on October 15, 2024 and sell it today you would earn a total of 1,200 from holding Sanbo Hospital Management or generate 40.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 86.82% |
| Values | Daily Returns |
Aofu Environmental Technology vs. Sanbo Hospital Management
Performance |
| Timeline |
| Aofu Environmental |
| Sanbo Hospital Management |
Aofu Environmental and Sanbo Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aofu Environmental and Sanbo Hospital
The main advantage of trading using opposite Aofu Environmental and Sanbo Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aofu Environmental 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.| Aofu Environmental vs. Jiangsu Jinling Sports | Aofu Environmental vs. Shandong Iron and | Aofu Environmental vs. Dynagreen Environmental Protection | Aofu Environmental vs. China Sports Industry |
| Sanbo Hospital vs. Qingdao Foods Co | Sanbo Hospital vs. Sunwave Communications Co | Sanbo Hospital vs. Yankershop Food Co | Sanbo Hospital vs. Anji Foodstuff Co |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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