Correlation Between Poly Real and Lotus Health
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By analyzing existing cross correlation between Poly Real Estate and Lotus Health Group, you can compare the effects of market volatilities on Poly Real 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 Poly Real with a short position of Lotus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poly Real and Lotus Health.
Diversification Opportunities for Poly Real and Lotus Health
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Poly and Lotus is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Poly Real Estate 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 Poly Real 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 Poly Real Estate 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 Poly Real i.e., Poly Real and Lotus Health go up and down completely randomly.
Pair Corralation between Poly Real and Lotus Health
Assuming the 90 days trading horizon Poly Real Estate is expected to under-perform the Lotus Health. But the stock apears to be less risky and, when comparing its historical volatility, Poly Real Estate is 1.68 times less risky than Lotus Health. The stock trades about -0.12 of its potential returns per unit of risk. The Lotus Health Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 470.00 in Lotus Health Group on September 4, 2024 and sell it today you would earn a total of 40.00 from holding Lotus Health Group or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Poly Real Estate vs. Lotus Health Group
Performance |
| Timeline |
| Poly Real Estate |
| Lotus Health Group |
Poly Real and Lotus Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Poly Real and Lotus Health
The main advantage of trading using opposite Poly Real and Lotus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poly Real 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.| Poly Real vs. Zhongshan Broad Ocean Motor | Poly Real vs. Hubeiyichang Transportation Group | Poly Real vs. Guizhou BroadcastingTV Info | Poly Real vs. Aurora Optoelectronics Co |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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