Correlation Between Lotus Health and Nanjing Putian
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By analyzing existing cross correlation between Lotus Health Group and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Lotus Health and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Nanjing Putian.
Diversification Opportunities for Lotus Health and Nanjing Putian
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lotus and Nanjing is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Lotus Health i.e., Lotus Health and Nanjing Putian go up and down completely randomly.
Pair Corralation between Lotus Health and Nanjing Putian
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 1.38 times more return on investment than Nanjing Putian. However, Lotus Health is 1.38 times more volatile than Nanjing Putian Telecommunications. It trades about 0.06 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about -0.04 per unit of risk. If you would invest 493.00 in Lotus Health Group on October 25, 2024 and sell it today you would earn a total of 23.00 from holding Lotus Health Group or generate 4.67% 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. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Lotus Health Group |
| Nanjing Putian Telec |
Lotus Health and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Nanjing Putian
The main advantage of trading using opposite Lotus Health and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.| Lotus Health vs. Agricultural Bank of | Lotus Health vs. Postal Savings Bank | Lotus Health vs. Bank of Communications | Lotus Health vs. China Merchants Bank |
| Nanjing Putian vs. Kweichow Moutai Co | Nanjing Putian vs. NAURA Technology Group | Nanjing Putian vs. APT Medical | Nanjing Putian vs. BYD Co Ltd |
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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