Correlation Between Sinomach Automobile and Sanbo Hospital
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By analyzing existing cross correlation between Sinomach Automobile Co and Sanbo Hospital Management, you can compare the effects of market volatilities on Sinomach Automobile 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 Sinomach Automobile with a short position of Sanbo Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Sanbo Hospital.
Diversification Opportunities for Sinomach Automobile and Sanbo Hospital
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinomach and Sanbo is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co 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 Sinomach Automobile 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 Sinomach Automobile Co 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 Sinomach Automobile i.e., Sinomach Automobile and Sanbo Hospital go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Sanbo Hospital
Assuming the 90 days trading horizon Sinomach Automobile is expected to generate 4.41 times less return on investment than Sanbo Hospital. But when comparing it to its historical volatility, Sinomach Automobile Co is 1.39 times less risky than Sanbo Hospital. It trades about 0.02 of its potential returns per unit of risk. Sanbo Hospital Management is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,630 in Sanbo Hospital Management on November 19, 2024 and sell it today you would earn a total of 411.00 from holding Sanbo Hospital Management or generate 8.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Sinomach Automobile Co vs. Sanbo Hospital Management
Performance |
Timeline |
Sinomach Automobile |
Sanbo Hospital Management |
Sinomach Automobile and Sanbo Hospital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sinomach Automobile and Sanbo Hospital
The main advantage of trading using opposite Sinomach Automobile and Sanbo Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile 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.Sinomach Automobile vs. Ningxia Building Materials | ||
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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