Correlation Between Hangzhou Minsheng and Lotus Health
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By analyzing existing cross correlation between Hangzhou Minsheng Healthcare and Lotus Health Group, you can compare the effects of market volatilities on Hangzhou Minsheng 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 Hangzhou Minsheng with a short position of Lotus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Minsheng and Lotus Health.
Diversification Opportunities for Hangzhou Minsheng and Lotus Health
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and Lotus is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Minsheng Healthcare 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 Hangzhou Minsheng 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 Hangzhou Minsheng Healthcare 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 Hangzhou Minsheng i.e., Hangzhou Minsheng and Lotus Health go up and down completely randomly.
Pair Corralation between Hangzhou Minsheng and Lotus Health
Assuming the 90 days trading horizon Hangzhou Minsheng Healthcare is expected to under-perform the Lotus Health. In addition to that, Hangzhou Minsheng is 1.03 times more volatile than Lotus Health Group. It trades about -0.06 of its total potential returns per unit of risk. Lotus Health Group is currently generating about 0.07 per unit of volatility. If you would invest 281.00 in Lotus Health Group on September 4, 2024 and sell it today you would earn a total of 239.00 from holding Lotus Health Group or generate 85.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 83.57% |
| Values | Daily Returns |
Hangzhou Minsheng Healthcare vs. Lotus Health Group
Performance |
| Timeline |
| Hangzhou Minsheng |
| Lotus Health Group |
Hangzhou Minsheng and Lotus Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Minsheng and Lotus Health
The main advantage of trading using opposite Hangzhou Minsheng and Lotus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Minsheng 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.| Hangzhou Minsheng vs. Chengdu Xingrong Investment | Hangzhou Minsheng vs. Nexchip Semiconductor Corp | Hangzhou Minsheng vs. Zoje Resources Investment | Hangzhou Minsheng vs. Guangdong Marubi Biotechnology |
| Lotus Health vs. Poly Real Estate | Lotus Health vs. China Vanke Co | Lotus Health vs. China Merchants Shekou | Lotus Health vs. Huafa Industrial Co |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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