Correlation Between Sabra Health and ANHUI CONCH
Can any of the company-specific risk be diversified away by investing in both Sabra Health and ANHUI CONCH at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sabra Health and ANHUI CONCH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabra Health Care and ANHUI CH H , you can compare the effects of market volatilities on Sabra Health and ANHUI CONCH 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 Sabra Health with a short position of ANHUI CONCH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Health and ANHUI CONCH.
Diversification Opportunities for Sabra Health and ANHUI CONCH
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sabra and ANHUI is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Health Care and ANHUI CH H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANHUI CONCH and Sabra Health 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 Sabra Health Care are associated (or correlated) with ANHUI CONCH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANHUI CONCH has no effect on the direction of Sabra Health i.e., Sabra Health and ANHUI CONCH go up and down completely randomly.
Pair Corralation between Sabra Health and ANHUI CONCH
Assuming the 90 days horizon Sabra Health Care is expected to under-perform the ANHUI CONCH. But the stock apears to be less risky and, when comparing its historical volatility, Sabra Health Care is 1.42 times less risky than ANHUI CONCH. The stock trades about -0.14 of its potential returns per unit of risk. The ANHUI CH H is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 259.00 in ANHUI CH H on September 12, 2024 and sell it today you would lose (10.00) from holding ANHUI CH H or give up 3.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sabra Health Care vs. ANHUI CH H
Performance |
| Timeline |
| Sabra Health Care |
| ANHUI CONCH |
Sabra Health and ANHUI CONCH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Health and ANHUI CONCH
The main advantage of trading using opposite Sabra Health and ANHUI CONCH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Health position performs unexpectedly, ANHUI CONCH 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 ANHUI CONCH will offset losses from the drop in ANHUI CONCH's long position.| Sabra Health vs. Welltower | Sabra Health vs. Superior Plus Corp | Sabra Health vs. NMI Holdings | Sabra Health vs. SIVERS SEMICONDUCTORS AB |
| ANHUI CONCH vs. Perseus Mining Limited | ANHUI CONCH vs. Sabra Health Care | ANHUI CONCH vs. Natural Health Trends | ANHUI CONCH vs. MINCO SILVER |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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