Correlation Between Holitech Technology and Lotus Health
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By analyzing existing cross correlation between Holitech Technology Co and Lotus Health Group, you can compare the effects of market volatilities on Holitech Technology and Lotus Health 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 Holitech Technology with a short position of Lotus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Lotus Health.
Diversification Opportunities for Holitech Technology and Lotus Health
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Holitech and Lotus is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Lotus Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotus Health Group and Holitech Technology 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 Holitech Technology Co are associated (or correlated) with Lotus Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotus Health Group has no effect on the direction of Holitech Technology i.e., Holitech Technology and Lotus Health go up and down completely randomly.
Pair Corralation between Holitech Technology and Lotus Health
Assuming the 90 days trading horizon Holitech Technology is expected to generate 8.24 times less return on investment than Lotus Health. In addition to that, Holitech Technology is 1.2 times more volatile than Lotus Health Group. It trades about 0.01 of its total potential returns per unit of risk. Lotus Health Group is currently generating about 0.06 per unit of volatility. If you would invest 286.00 in Lotus Health Group on September 2, 2024 and sell it today you would earn a total of 244.00 from holding Lotus Health Group or generate 85.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Holitech Technology Co vs. Lotus Health Group
Performance |
| Timeline |
| Holitech Technology |
| Lotus Health Group |
Holitech Technology and Lotus Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Lotus Health
The main advantage of trading using opposite Holitech Technology and Lotus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Lotus Health 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 Lotus Health will offset losses from the drop in Lotus Health's long position.| Holitech Technology vs. Cultural Investment Holdings | Holitech Technology vs. Gome Telecom Equipment | Holitech Technology vs. Bus Online Co | Holitech Technology vs. Zotye Automobile Co |
| Lotus Health vs. AVCON Information Tech | Lotus Health vs. Heilongjiang Transport Development | Lotus Health vs. Zhongshan Broad Ocean Motor | Lotus Health vs. YLZ Information Tech |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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