Correlation Between Guangzhou Jinyi and Lotus Health
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Jinyi Media and Lotus Health Group, you can compare the effects of market volatilities on Guangzhou Jinyi 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 Guangzhou Jinyi with a short position of Lotus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jinyi and Lotus Health.
Diversification Opportunities for Guangzhou Jinyi and Lotus Health
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Lotus is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jinyi Media 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 Guangzhou Jinyi 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 Guangzhou Jinyi Media 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 Guangzhou Jinyi i.e., Guangzhou Jinyi and Lotus Health go up and down completely randomly.
Pair Corralation between Guangzhou Jinyi and Lotus Health
Assuming the 90 days trading horizon Guangzhou Jinyi is expected to generate 1.21 times less return on investment than Lotus Health. But when comparing it to its historical volatility, Guangzhou Jinyi Media is 1.49 times less risky than Lotus Health. It trades about 0.01 of its potential returns per unit of risk. Lotus Health Group is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 518.00 in Lotus Health Group on October 30, 2024 and sell it today you would lose (15.00) from holding Lotus Health Group or give up 2.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jinyi Media vs. Lotus Health Group
Performance |
| Timeline |
| Guangzhou Jinyi Media |
| Lotus Health Group |
Guangzhou Jinyi and Lotus Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jinyi and Lotus Health
The main advantage of trading using opposite Guangzhou Jinyi and Lotus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jinyi 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.| Guangzhou Jinyi vs. China State Construction | Guangzhou Jinyi vs. Poly Real Estate | Guangzhou Jinyi vs. China Vanke Co | Guangzhou Jinyi vs. China Merchants Shekou |
| Lotus Health vs. Healthcare Co | Lotus Health vs. Everjoy Health Group | Lotus Health vs. GRG Banking Equipment | Lotus Health vs. Shanghai Rongtai Health |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |