Correlation Between Sanbo Hospital and Malion New

Can any of the company-specific risk be diversified away by investing in both Sanbo Hospital and Malion New 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 Sanbo Hospital and Malion New into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sanbo Hospital Management and Malion New Materials, you can compare the effects of market volatilities on Sanbo Hospital and Malion New 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 Malion New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanbo Hospital and Malion New.

Diversification Opportunities for Sanbo Hospital and Malion New

0.64

Correlation Coefficient

Sanbo Hospital  Malion New

Poor diversification

The 3 months correlation between Sanbo and Malion is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Sanbo Hospital Management and Malion New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malion New Materials 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 Malion New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malion New Materials has no effect on the direction of Sanbo Hospital i.e., Sanbo Hospital and Malion New go up and down completely randomly.

Pair Corralation between Sanbo Hospital and Malion New

Assuming the 90 days trading horizon Sanbo Hospital Management is expected to under-perform the Malion New. In addition to that, Sanbo Hospital is 1.51 times more volatile than Malion New Materials. It trades about -0.07 of its total potential returns per unit of risk. Malion New Materials is currently generating about 0.14 per unit of volatility. If you would invest  858.00  in Malion New Materials on December 24, 2024 and sell it today you would earn a total of  56.00  from holding Malion New Materials or generate 6.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Sanbo Hospital Management  vs.  Malion New Materials

Sanbo Hospital Management

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sanbo Hospital Management are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Sanbo Hospital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Malion New Materials

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Malion New Materials are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Malion New may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Sanbo Hospital and Malion New

The main advantage of trading using opposite Sanbo Hospital and Malion New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanbo Hospital position performs unexpectedly, Malion New 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 Malion New will offset losses from the drop in Malion New's long position.

The idea behind Sanbo Hospital Management and Malion New Materials pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.