Correlation Between Andon Health and Lotus Health
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By analyzing existing cross correlation between Andon Health Co and Lotus Health Group, you can compare the effects of market volatilities on Andon Health 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 Andon Health with a short position of Lotus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andon Health and Lotus Health.
Diversification Opportunities for Andon Health and Lotus Health
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Andon and Lotus is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Andon Health 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 Andon Health 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 Andon Health 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 Andon Health i.e., Andon Health and Lotus Health go up and down completely randomly.
Pair Corralation between Andon Health and Lotus Health
Assuming the 90 days trading horizon Andon Health is expected to generate 7.18 times less return on investment than Lotus Health. But when comparing it to its historical volatility, Andon Health Co is 1.31 times less risky than Lotus Health. It trades about 0.05 of its potential returns per unit of risk. Lotus Health Group is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 321.00 in Lotus Health Group on September 2, 2024 and sell it today you would earn a total of 209.00 from holding Lotus Health Group or generate 65.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Andon Health Co vs. Lotus Health Group
Performance |
| Timeline |
| Andon Health |
| Lotus Health Group |
Andon Health and Lotus Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Andon Health and Lotus Health
The main advantage of trading using opposite Andon Health and Lotus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andon Health 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.| Andon Health vs. Guizhou Chanhen Chemical | Andon Health vs. Qinghaihuading Industrial Co | Andon Health vs. Shenyang Chemical Industry | Andon Health vs. Do Fluoride Chemicals 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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