Correlation Between Lotus Health and Shengda Mining
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By analyzing existing cross correlation between Lotus Health Group and Shengda Mining Co, you can compare the effects of market volatilities on Lotus Health and Shengda Mining 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 Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Shengda Mining.
Diversification Opportunities for Lotus Health and Shengda Mining
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lotus and Shengda is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining 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 Shengda Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengda Mining has no effect on the direction of Lotus Health i.e., Lotus Health and Shengda Mining go up and down completely randomly.
Pair Corralation between Lotus Health and Shengda Mining
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 1.65 times more return on investment than Shengda Mining. However, Lotus Health is 1.65 times more volatile than Shengda Mining Co. It trades about 0.14 of its potential returns per unit of risk. Shengda Mining Co is currently generating about 0.12 per unit of risk. If you would invest 299.00 in Lotus Health Group on October 18, 2024 and sell it today you would earn a total of 157.00 from holding Lotus Health Group or generate 52.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.75% |
| Values | Daily Returns |
Lotus Health Group vs. Shengda Mining Co
Performance |
| Timeline |
| Lotus Health Group |
| Shengda Mining |
Lotus Health and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Shengda Mining
The main advantage of trading using opposite Lotus Health and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Shengda Mining 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 Shengda Mining will offset losses from the drop in Shengda Mining's long position.| Lotus Health vs. Wasu Media Holding | Lotus Health vs. Southern PublishingMedia Co | Lotus Health vs. Hangzhou Arcvideo Technology | Lotus Health vs. China Publishing Media |
| Shengda Mining vs. Hangzhou Minsheng Healthcare | Shengda Mining vs. Lotus Health Group | Shengda Mining vs. Ningxia Building Materials | Shengda Mining vs. Keda Clean Energy |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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