Correlation Between Sanbo Hospital and Liuzhou Chemical
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By analyzing existing cross correlation between Sanbo Hospital Management and Liuzhou Chemical Industry, you can compare the effects of market volatilities on Sanbo Hospital and Liuzhou Chemical 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 Liuzhou Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanbo Hospital and Liuzhou Chemical.
Diversification Opportunities for Sanbo Hospital and Liuzhou Chemical
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sanbo and Liuzhou is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Sanbo Hospital Management and Liuzhou Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liuzhou Chemical Industry 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 Liuzhou Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liuzhou Chemical Industry has no effect on the direction of Sanbo Hospital i.e., Sanbo Hospital and Liuzhou Chemical go up and down completely randomly.
Pair Corralation between Sanbo Hospital and Liuzhou Chemical
Assuming the 90 days trading horizon Sanbo Hospital is expected to generate 1.0 times less return on investment than Liuzhou Chemical. In addition to that, Sanbo Hospital is 1.5 times more volatile than Liuzhou Chemical Industry. It trades about 0.07 of its total potential returns per unit of risk. Liuzhou Chemical Industry is currently generating about 0.11 per unit of volatility. If you would invest 235.00 in Liuzhou Chemical Industry on September 24, 2024 and sell it today you would earn a total of 80.00 from holding Liuzhou Chemical Industry or generate 34.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Sanbo Hospital Management vs. Liuzhou Chemical Industry
Performance |
Timeline |
Sanbo Hospital Management |
Liuzhou Chemical Industry |
Sanbo Hospital and Liuzhou Chemical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sanbo Hospital and Liuzhou Chemical
The main advantage of trading using opposite Sanbo Hospital and Liuzhou Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanbo Hospital position performs unexpectedly, Liuzhou Chemical 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 Liuzhou Chemical will offset losses from the drop in Liuzhou Chemical's long position.Sanbo Hospital vs. Panda Financial Holding | Sanbo Hospital vs. Guangdong Jingyi Metal | Sanbo Hospital vs. HeNan Splendor Science | Sanbo Hospital vs. Hua Xia Bank |
Liuzhou Chemical vs. China Life Insurance | Liuzhou Chemical vs. Chengdu Spaceon Electronics | Liuzhou Chemical vs. Oppein Home Group | Liuzhou Chemical vs. Sanbo Hospital Management |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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