Correlation Between Lotus Health and Aba Chemicals
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By analyzing existing cross correlation between Lotus Health Group and Aba Chemicals Corp, you can compare the effects of market volatilities on Lotus Health and Aba Chemicals 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 Aba Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Aba Chemicals.
Diversification Opportunities for Lotus Health and Aba Chemicals
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lotus and Aba is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Aba Chemicals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aba Chemicals Corp 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 Aba Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aba Chemicals Corp has no effect on the direction of Lotus Health i.e., Lotus Health and Aba Chemicals go up and down completely randomly.
Pair Corralation between Lotus Health and Aba Chemicals
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 0.97 times more return on investment than Aba Chemicals. However, Lotus Health Group is 1.03 times less risky than Aba Chemicals. It trades about 0.05 of its potential returns per unit of risk. Aba Chemicals Corp is currently generating about -0.02 per unit of risk. If you would invest 266.00 in Lotus Health Group on October 18, 2024 and sell it today you would earn a total of 190.00 from holding Lotus Health Group or generate 71.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotus Health Group vs. Aba Chemicals Corp
Performance |
| Timeline |
| Lotus Health Group |
| Aba Chemicals Corp |
Lotus Health and Aba Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Aba Chemicals
The main advantage of trading using opposite Lotus Health and Aba Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Aba Chemicals 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 Aba Chemicals will offset losses from the drop in Aba Chemicals' long position.| Lotus Health vs. Dareway Software Co | Lotus Health vs. Servyou Software Group | Lotus Health vs. Wuhan Yangtze Communication | Lotus Health vs. Hangzhou Pinming Software |
| Aba Chemicals vs. Maoming Petro Chemical Shihua | Aba Chemicals vs. Lotus Health Group | Aba Chemicals vs. Everjoy Health Group | Aba Chemicals vs. Andon Health 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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