Correlation Between Lotus Health and Shenyang Chemical
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By analyzing existing cross correlation between Lotus Health Group and Shenyang Chemical Industry, you can compare the effects of market volatilities on Lotus Health and Shenyang Chemical 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 Shenyang Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Shenyang Chemical.
Diversification Opportunities for Lotus Health and Shenyang Chemical
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lotus and Shenyang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Shenyang Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Chemical 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 Shenyang Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Chemical has no effect on the direction of Lotus Health i.e., Lotus Health and Shenyang Chemical go up and down completely randomly.
Pair Corralation between Lotus Health and Shenyang Chemical
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 1.08 times more return on investment than Shenyang Chemical. However, Lotus Health is 1.08 times more volatile than Shenyang Chemical Industry. It trades about 0.06 of its potential returns per unit of risk. Shenyang Chemical Industry is currently generating about -0.01 per unit of risk. If you would invest 282.00 in Lotus Health Group on September 5, 2024 and sell it today you would earn a total of 228.00 from holding Lotus Health Group or generate 80.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotus Health Group vs. Shenyang Chemical Industry
Performance |
| Timeline |
| Lotus Health Group |
| Shenyang Chemical |
Lotus Health and Shenyang Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Shenyang Chemical
The main advantage of trading using opposite Lotus Health and Shenyang Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Shenyang Chemical 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 Shenyang Chemical will offset losses from the drop in Shenyang Chemical's long position.| Lotus Health vs. Shenyang Chemical Industry | Lotus Health vs. China Asset Management | Lotus Health vs. North Huajin Chemical | Lotus Health vs. HeBei Jinniu Chemical |
| Shenyang Chemical vs. Zijin Mining Group | Shenyang Chemical vs. Wanhua Chemical Group | Shenyang Chemical vs. Baoshan Iron Steel | Shenyang Chemical vs. Shandong Gold Mining |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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