Correlation Between KSEC Intelligent and Sanbo Hospital

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Can any of the company-specific risk be diversified away by investing in both KSEC Intelligent and Sanbo Hospital 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 KSEC Intelligent and Sanbo Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KSEC Intelligent Technology and Sanbo Hospital Management, you can compare the effects of market volatilities on KSEC Intelligent 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 KSEC Intelligent with a short position of Sanbo Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of KSEC Intelligent and Sanbo Hospital.

Diversification Opportunities for KSEC Intelligent and Sanbo Hospital

KSECSanboDiversified AwayKSECSanboDiversified Away100%
0.72
  Correlation Coefficient

Poor diversification

The 3 months correlation between KSEC and Sanbo is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding KSEC Intelligent 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 KSEC Intelligent 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 KSEC Intelligent 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 KSEC Intelligent i.e., KSEC Intelligent and Sanbo Hospital go up and down completely randomly.

Pair Corralation between KSEC Intelligent and Sanbo Hospital

Assuming the 90 days trading horizon KSEC Intelligent Technology is expected to under-perform the Sanbo Hospital. In addition to that, KSEC Intelligent is 1.05 times more volatile than Sanbo Hospital Management. It trades about -0.01 of its total potential returns per unit of risk. Sanbo Hospital Management is currently generating about 0.01 per unit of volatility. If you would invest  5,084  in Sanbo Hospital Management on October 27, 2024 and sell it today you would lose (574.00) from holding Sanbo Hospital Management or give up 11.29% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

KSEC Intelligent Technology  vs.  Sanbo Hospital Management

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -20-100102030
JavaScript chart by amCharts 3.21.15301311 301293
       Timeline  
KSEC Intelligent Tec 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days KSEC Intelligent Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan17181920212223
Sanbo Hospital Management 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Sanbo Hospital Management are ranked lower than 2 (%) 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.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan455055

KSEC Intelligent and Sanbo Hospital Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.03-3.02-2.01-0.990.01520.911.832.743.66 0.030.040.050.060.07
JavaScript chart by amCharts 3.21.15301311 301293
       Returns  

Pair Trading with KSEC Intelligent and Sanbo Hospital

The main advantage of trading using opposite KSEC Intelligent and Sanbo Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KSEC Intelligent 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.
The idea behind KSEC Intelligent Technology and Sanbo Hospital Management 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

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