Correlation Between Sanbo Hospital and Jiangsu Changhai
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By analyzing existing cross correlation between Sanbo Hospital Management and Jiangsu Changhai Compos, you can compare the effects of market volatilities on Sanbo Hospital and Jiangsu Changhai 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 Sanbo Hospital with a short position of Jiangsu Changhai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanbo Hospital and Jiangsu Changhai.
Diversification Opportunities for Sanbo Hospital and Jiangsu Changhai
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sanbo and Jiangsu is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Sanbo Hospital Management and Jiangsu Changhai Compos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Changhai Compos and Sanbo Hospital 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 Sanbo Hospital Management are associated (or correlated) with Jiangsu Changhai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Changhai Compos has no effect on the direction of Sanbo Hospital i.e., Sanbo Hospital and Jiangsu Changhai go up and down completely randomly.
Pair Corralation between Sanbo Hospital and Jiangsu Changhai
Assuming the 90 days trading horizon Sanbo Hospital Management is expected to under-perform the Jiangsu Changhai. In addition to that, Sanbo Hospital is 2.29 times more volatile than Jiangsu Changhai Compos. It trades about -0.17 of its total potential returns per unit of risk. Jiangsu Changhai Compos is currently generating about -0.38 per unit of volatility. If you would invest 1,194 in Jiangsu Changhai Compos on October 10, 2024 and sell it today you would lose (158.00) from holding Jiangsu Changhai Compos or give up 13.23% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
Sanbo Hospital Management vs. Jiangsu Changhai Compos
Performance |
Timeline |
Sanbo Hospital Management |
Jiangsu Changhai Compos |
Sanbo Hospital and Jiangsu Changhai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sanbo Hospital and Jiangsu Changhai
The main advantage of trading using opposite Sanbo Hospital and Jiangsu Changhai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanbo Hospital position performs unexpectedly, Jiangsu Changhai 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 Jiangsu Changhai will offset losses from the drop in Jiangsu Changhai's long position.Sanbo Hospital vs. Industrial and Commercial | Sanbo Hospital vs. China Construction Bank | Sanbo Hospital vs. Agricultural Bank of | Sanbo Hospital vs. Bank of China |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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