Correlation Between Lotus Health and Zoje Resources
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By analyzing existing cross correlation between Lotus Health Group and Zoje Resources Investment, you can compare the effects of market volatilities on Lotus Health and Zoje Resources 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 Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Zoje Resources.
Diversification Opportunities for Lotus Health and Zoje Resources
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lotus and Zoje is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources Investment 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 Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of Lotus Health i.e., Lotus Health and Zoje Resources go up and down completely randomly.
Pair Corralation between Lotus Health and Zoje Resources
Assuming the 90 days trading horizon Lotus Health Group is expected to under-perform the Zoje Resources. In addition to that, Lotus Health is 1.72 times more volatile than Zoje Resources Investment. It trades about -0.2 of its total potential returns per unit of risk. Zoje Resources Investment is currently generating about -0.04 per unit of volatility. If you would invest 250.00 in Zoje Resources Investment on November 3, 2024 and sell it today you would lose (8.00) from holding Zoje Resources Investment or give up 3.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotus Health Group vs. Zoje Resources Investment
Performance |
| Timeline |
| Lotus Health Group |
| Zoje Resources Investment |
Lotus Health and Zoje Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Zoje Resources
The main advantage of trading using opposite Lotus Health and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Zoje Resources 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 Zoje Resources will offset losses from the drop in Zoje Resources' long position.| Lotus Health vs. Lander Sports Development | Lotus Health vs. Luyin Investment Group | Lotus Health vs. Xizi Clean Energy | Lotus Health vs. Ciwen Media Co |
| Zoje Resources vs. Beijing Jiaman Dress | Zoje Resources vs. Vohringer Home Technology | Zoje Resources vs. Shenzhen MYS Environmental | Zoje Resources vs. Shengyuan Environmental Protection |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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