Correlation Between Anhui Huaren and Lotus Health
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By analyzing existing cross correlation between Anhui Huaren Health and Lotus Health Group, you can compare the effects of market volatilities on Anhui Huaren 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 Anhui Huaren with a short position of Lotus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaren and Lotus Health.
Diversification Opportunities for Anhui Huaren and Lotus Health
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Lotus is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaren Health 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 Anhui Huaren 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 Anhui Huaren Health 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 Anhui Huaren i.e., Anhui Huaren and Lotus Health go up and down completely randomly.
Pair Corralation between Anhui Huaren and Lotus Health
Assuming the 90 days trading horizon Anhui Huaren Health is expected to under-perform the Lotus Health. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Huaren Health is 1.16 times less risky than Lotus Health. The stock trades about -0.02 of its potential returns per unit of risk. The Lotus Health Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 465.00 in Lotus Health Group on August 28, 2024 and sell it today you would earn a total of 17.00 from holding Lotus Health Group or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaren Health vs. Lotus Health Group
Performance |
| Timeline |
| Anhui Huaren Health |
| Lotus Health Group |
Anhui Huaren and Lotus Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaren and Lotus Health
The main advantage of trading using opposite Anhui Huaren and Lotus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaren 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.| Anhui Huaren vs. Ming Yang Smart | Anhui Huaren vs. 159681 | Anhui Huaren vs. 159005 | Anhui Huaren vs. Loctek Ergonomic Technology |
| Lotus Health vs. China Petroleum Chemical | Lotus Health vs. PetroChina Co Ltd | Lotus Health vs. China State Construction | Lotus Health vs. China Railway Group |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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