Correlation Between Lotus Health and Xinjiang Beixin
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By analyzing existing cross correlation between Lotus Health Group and Xinjiang Beixin RoadBridge, you can compare the effects of market volatilities on Lotus Health and Xinjiang Beixin 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 Xinjiang Beixin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Xinjiang Beixin.
Diversification Opportunities for Lotus Health and Xinjiang Beixin
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lotus and Xinjiang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Xinjiang Beixin RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Beixin Road 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 Xinjiang Beixin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Beixin Road has no effect on the direction of Lotus Health i.e., Lotus Health and Xinjiang Beixin go up and down completely randomly.
Pair Corralation between Lotus Health and Xinjiang Beixin
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 1.01 times more return on investment than Xinjiang Beixin. However, Lotus Health is 1.01 times more volatile than Xinjiang Beixin RoadBridge. It trades about 0.21 of its potential returns per unit of risk. Xinjiang Beixin RoadBridge is currently generating about 0.15 per unit of risk. If you would invest 455.00 in Lotus Health Group on August 31, 2024 and sell it today you would earn a total of 75.00 from holding Lotus Health Group or generate 16.48% 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. Xinjiang Beixin RoadBridge
Performance |
| Timeline |
| Lotus Health Group |
| Xinjiang Beixin Road |
Lotus Health and Xinjiang Beixin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Xinjiang Beixin
The main advantage of trading using opposite Lotus Health and Xinjiang Beixin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Xinjiang Beixin 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 Xinjiang Beixin will offset losses from the drop in Xinjiang Beixin's long position.| Lotus Health vs. Lutian Machinery Co | Lotus Health vs. PetroChina Co Ltd | Lotus Health vs. Bank of China | Lotus Health vs. Gansu Jiu Steel |
| Xinjiang Beixin vs. Cultural Investment Holdings | Xinjiang Beixin vs. Gome Telecom Equipment | Xinjiang Beixin vs. Bus Online Co | Xinjiang Beixin vs. Holitech Technology Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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