Correlation Between Shenzhen and Lotus Health
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By analyzing existing cross correlation between Shenzhen AV Display Co and Lotus Health Group, you can compare the effects of market volatilities on Shenzhen 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 Shenzhen with a short position of Lotus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen and Lotus Health.
Diversification Opportunities for Shenzhen and Lotus Health
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Lotus is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen AV Display 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 Shenzhen 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 Shenzhen AV Display 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 Shenzhen i.e., Shenzhen and Lotus Health go up and down completely randomly.
Pair Corralation between Shenzhen and Lotus Health
Assuming the 90 days trading horizon Shenzhen AV Display Co is expected to generate 0.6 times more return on investment than Lotus Health. However, Shenzhen AV Display Co is 1.67 times less risky than Lotus Health. It trades about -0.25 of its potential returns per unit of risk. Lotus Health Group is currently generating about -0.18 per unit of risk. If you would invest 3,496 in Shenzhen AV Display Co on October 16, 2024 and sell it today you would lose (587.00) from holding Shenzhen AV Display Co or give up 16.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen AV Display Co vs. Lotus Health Group
Performance |
| Timeline |
| Shenzhen AV Display |
| Lotus Health Group |
Shenzhen and Lotus Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen and Lotus Health
The main advantage of trading using opposite Shenzhen and Lotus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen 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.| Shenzhen vs. Pengxin International Mining | Shenzhen vs. Xinjiang Baodi Mining | Shenzhen vs. Glodon Software Co | Shenzhen vs. Beijing Baolande Software |
| Lotus Health vs. Ciwen Media Co | Lotus Health vs. Guangzhou Jinyi Media | Lotus Health vs. Huayi Brothers Media | Lotus Health vs. Jiangnan Mould Plastic |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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