Correlation Between Lotus Health and Allwin Telecommunicatio
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By analyzing existing cross correlation between Lotus Health Group and Allwin Telecommunication Co, you can compare the effects of market volatilities on Lotus Health and Allwin Telecommunicatio 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 Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Allwin Telecommunicatio.
Diversification Opportunities for Lotus Health and Allwin Telecommunicatio
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lotus and Allwin is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio 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 Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of Lotus Health i.e., Lotus Health and Allwin Telecommunicatio go up and down completely randomly.
Pair Corralation between Lotus Health and Allwin Telecommunicatio
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 2.02 times more return on investment than Allwin Telecommunicatio. However, Lotus Health is 2.02 times more volatile than Allwin Telecommunication Co. It trades about 0.21 of its potential returns per unit of risk. Allwin Telecommunication Co is currently generating about 0.13 per unit of risk. If you would invest 504.00 in Lotus Health Group on November 8, 2024 and sell it today you would earn a total of 88.00 from holding Lotus Health Group or generate 17.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotus Health Group vs. Allwin Telecommunication Co
Performance |
| Timeline |
| Lotus Health Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Allwin Telecommunicatio |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Lotus Health and Allwin Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Allwin Telecommunicatio
The main advantage of trading using opposite Lotus Health and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio's long position.The idea behind Lotus Health Group and Allwin Telecommunication Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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