Correlation Between Lotus Health and Guangzhou KingTeller
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By analyzing existing cross correlation between Lotus Health Group and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Lotus Health and Guangzhou KingTeller 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 Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Guangzhou KingTeller.
Diversification Opportunities for Lotus Health and Guangzhou KingTeller
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lotus and Guangzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller 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 Guangzhou KingTeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KingTeller has no effect on the direction of Lotus Health i.e., Lotus Health and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Lotus Health and Guangzhou KingTeller
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 0.91 times more return on investment than Guangzhou KingTeller. However, Lotus Health Group is 1.1 times less risky than Guangzhou KingTeller. It trades about 0.06 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.04 per unit of risk. If you would invest 293.00 in Lotus Health Group on September 3, 2024 and sell it today you would earn a total of 237.00 from holding Lotus Health Group or generate 80.89% 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. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Lotus Health Group |
| Guangzhou KingTeller |
Lotus Health and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Guangzhou KingTeller
The main advantage of trading using opposite Lotus Health and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Guangzhou KingTeller 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 Guangzhou KingTeller will offset losses from the drop in Guangzhou KingTeller's long position.| Lotus Health vs. Beijing Wantai Biological | Lotus Health vs. Aluminum Corp of | Lotus Health vs. COL Digital Publishing | Lotus Health vs. Shaanxi Meineng Clean |
| Guangzhou KingTeller vs. Agricultural Bank of | Guangzhou KingTeller vs. China Construction Bank | Guangzhou KingTeller vs. Postal Savings Bank | Guangzhou KingTeller vs. Bank of Communications |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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