Correlation Between Lotus Health and Lander Sports
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By analyzing existing cross correlation between Lotus Health Group and Lander Sports Development, you can compare the effects of market volatilities on Lotus Health and Lander Sports 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 Lotus Health with a short position of Lander Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Lander Sports.
Diversification Opportunities for Lotus Health and Lander Sports
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lotus and Lander is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Lander Sports Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lander Sports Development and Lotus Health 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 Lotus Health Group are associated (or correlated) with Lander Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lander Sports Development has no effect on the direction of Lotus Health i.e., Lotus Health and Lander Sports go up and down completely randomly.
Pair Corralation between Lotus Health and Lander Sports
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 2.74 times more return on investment than Lander Sports. However, Lotus Health is 2.74 times more volatile than Lander Sports Development. It trades about 0.29 of its potential returns per unit of risk. Lander Sports Development is currently generating about 0.06 per unit of risk. If you would invest 538.00 in Lotus Health Group on November 29, 2024 and sell it today you would earn a total of 153.00 from holding Lotus Health Group or generate 28.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotus Health Group vs. Lander Sports Development
Performance |
| Timeline |
| Lotus Health Group |
| Lander Sports Development |
Lotus Health and Lander Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Lander Sports
The main advantage of trading using opposite Lotus Health and Lander Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Lander Sports 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 Lander Sports will offset losses from the drop in Lander Sports' long position.| Lotus Health vs. Jilin OLED Material | Lotus Health vs. Changchun BCHT Biotechnology | Lotus Health vs. Nanya New Material | Lotus Health vs. Wankai New Materials |
| Lander Sports vs. Southern PublishingMedia Co | Lander Sports vs. Time Publishing and | Lander Sports vs. Shanghai Action Education | Lander Sports vs. Beijing Yanjing Brewery |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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