Correlation Between Lotus Health and Andon Health
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By analyzing existing cross correlation between Lotus Health Group and Andon Health Co, you can compare the effects of market volatilities on Lotus Health and Andon Health 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 Andon Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Andon Health.
Diversification Opportunities for Lotus Health and Andon Health
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lotus and Andon is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Andon Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andon Health 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 Andon Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andon Health has no effect on the direction of Lotus Health i.e., Lotus Health and Andon Health go up and down completely randomly.
Pair Corralation between Lotus Health and Andon Health
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 1.31 times more return on investment than Andon Health. However, Lotus Health is 1.31 times more volatile than Andon Health Co. It trades about 0.26 of its potential returns per unit of risk. Andon Health Co is currently generating about 0.05 per unit of risk. If you would invest 321.00 in Lotus Health Group on September 2, 2024 and sell it today you would earn a total of 209.00 from holding Lotus Health Group or generate 65.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotus Health Group vs. Andon Health Co
Performance |
| Timeline |
| Lotus Health Group |
| Andon Health |
Lotus Health and Andon Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Andon Health
The main advantage of trading using opposite Lotus Health and Andon Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Andon Health 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 Andon Health will offset losses from the drop in Andon Health's long position.| Lotus Health vs. AVCON Information Tech | Lotus Health vs. Heilongjiang Transport Development | Lotus Health vs. Zhongshan Broad Ocean Motor | Lotus Health vs. YLZ Information Tech |
| Andon Health vs. Guizhou Chanhen Chemical | Andon Health vs. Qinghaihuading Industrial Co | Andon Health vs. Shenyang Chemical Industry | Andon Health vs. Do Fluoride Chemicals 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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