Correlation Between Lotus Health and Cangzhou Mingzhu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lotus Health Group and Cangzhou Mingzhu Plastic, you can compare the effects of market volatilities on Lotus Health and Cangzhou Mingzhu 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 Cangzhou Mingzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Cangzhou Mingzhu.
Diversification Opportunities for Lotus Health and Cangzhou Mingzhu
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lotus and Cangzhou is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Cangzhou Mingzhu Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cangzhou Mingzhu Plastic 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 Cangzhou Mingzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cangzhou Mingzhu Plastic has no effect on the direction of Lotus Health i.e., Lotus Health and Cangzhou Mingzhu go up and down completely randomly.
Pair Corralation between Lotus Health and Cangzhou Mingzhu
Assuming the 90 days trading horizon Lotus Health Group is expected to under-perform the Cangzhou Mingzhu. In addition to that, Lotus Health is 3.46 times more volatile than Cangzhou Mingzhu Plastic. It trades about -0.12 of its total potential returns per unit of risk. Cangzhou Mingzhu Plastic is currently generating about -0.42 per unit of volatility. If you would invest 390.00 in Cangzhou Mingzhu Plastic on October 16, 2024 and sell it today you would lose (54.00) from holding Cangzhou Mingzhu Plastic or give up 13.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotus Health Group vs. Cangzhou Mingzhu Plastic
Performance |
| Timeline |
| Lotus Health Group |
| Cangzhou Mingzhu Plastic |
Lotus Health and Cangzhou Mingzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Cangzhou Mingzhu
The main advantage of trading using opposite Lotus Health and Cangzhou Mingzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Cangzhou Mingzhu 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 Cangzhou Mingzhu will offset losses from the drop in Cangzhou Mingzhu's long position.| Lotus Health vs. Ciwen Media Co | Lotus Health vs. Guangzhou Jinyi Media | Lotus Health vs. Huayi Brothers Media | Lotus Health vs. Jiangnan Mould Plastic |
| Cangzhou Mingzhu vs. Everjoy Health Group | Cangzhou Mingzhu vs. Shenzhen Bioeasy Biotechnology | Cangzhou Mingzhu vs. Lotus Health Group | Cangzhou Mingzhu vs. Shandong Sanyuan Biotechnology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |