Correlation Between AVIC Fund and Lotus Health
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By analyzing existing cross correlation between AVIC Fund Management and Lotus Health Group, you can compare the effects of market volatilities on AVIC Fund 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 AVIC Fund with a short position of Lotus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Lotus Health.
Diversification Opportunities for AVIC Fund and Lotus Health
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AVIC and Lotus is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management 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 AVIC Fund 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 AVIC Fund Management 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 AVIC Fund i.e., AVIC Fund and Lotus Health go up and down completely randomly.
Pair Corralation between AVIC Fund and Lotus Health
Assuming the 90 days trading horizon AVIC Fund is expected to generate 2.73 times less return on investment than Lotus Health. But when comparing it to its historical volatility, AVIC Fund Management is 14.61 times less risky than Lotus Health. It trades about 0.34 of its potential returns per unit of risk. 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 27, 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 Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVIC Fund Management vs. Lotus Health Group
Performance |
| Timeline |
| AVIC Fund Management |
| Lotus Health Group |
AVIC Fund and Lotus Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Lotus Health
The main advantage of trading using opposite AVIC Fund and Lotus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund 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.| AVIC Fund vs. Industrial and Commercial | AVIC Fund vs. Kweichow Moutai Co | AVIC Fund vs. Agricultural Bank of | AVIC Fund vs. China Mobile Limited |
| 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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