Correlation Between Panda Financial and Sanbo Hospital
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By analyzing existing cross correlation between Panda Financial Holding and Sanbo Hospital Management, you can compare the effects of market volatilities on Panda Financial 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 Panda Financial with a short position of Sanbo Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panda Financial and Sanbo Hospital.
Diversification Opportunities for Panda Financial and Sanbo Hospital
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Panda and Sanbo is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Panda Financial Holding 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 Panda Financial 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 Panda Financial Holding 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 Panda Financial i.e., Panda Financial and Sanbo Hospital go up and down completely randomly.
Pair Corralation between Panda Financial and Sanbo Hospital
Assuming the 90 days trading horizon Panda Financial is expected to generate 9.97 times less return on investment than Sanbo Hospital. But when comparing it to its historical volatility, Panda Financial Holding is 1.34 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 0.16 of returns per unit of risk over similar time horizon. If you would invest 4,470 in Sanbo Hospital Management on September 24, 2024 and sell it today you would earn a total of 571.00 from holding Sanbo Hospital Management or generate 12.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Panda Financial Holding vs. Sanbo Hospital Management
Performance |
Timeline |
Panda Financial Holding |
Sanbo Hospital Management |
Panda Financial and Sanbo Hospital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Panda Financial and Sanbo Hospital
The main advantage of trading using opposite Panda Financial and Sanbo Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panda Financial 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.Panda Financial vs. China State Construction | Panda Financial vs. Poly Real Estate | Panda Financial vs. China Vanke Co | Panda Financial vs. China Merchants Shekou |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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