Correlation Between Lotus Health and Guangdong Xiongsu
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By analyzing existing cross correlation between Lotus Health Group and Guangdong Xiongsu Technology, you can compare the effects of market volatilities on Lotus Health and Guangdong Xiongsu 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 Guangdong Xiongsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Guangdong Xiongsu.
Diversification Opportunities for Lotus Health and Guangdong Xiongsu
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lotus and Guangdong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Guangdong Xiongsu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Xiongsu 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 Guangdong Xiongsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Xiongsu has no effect on the direction of Lotus Health i.e., Lotus Health and Guangdong Xiongsu go up and down completely randomly.
Pair Corralation between Lotus Health and Guangdong Xiongsu
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 0.98 times more return on investment than Guangdong Xiongsu. However, Lotus Health Group is 1.02 times less risky than Guangdong Xiongsu. It trades about 0.06 of its potential returns per unit of risk. Guangdong Xiongsu Technology is currently generating about 0.02 per unit of risk. If you would invest 293.00 in Lotus Health Group on September 3, 2024 and sell it today you would earn a total of 237.00 from holding Lotus Health Group or generate 80.89% 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. Guangdong Xiongsu Technology
Performance |
| Timeline |
| Lotus Health Group |
| Guangdong Xiongsu |
Lotus Health and Guangdong Xiongsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Guangdong Xiongsu
The main advantage of trading using opposite Lotus Health and Guangdong Xiongsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Guangdong Xiongsu 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 Guangdong Xiongsu will offset losses from the drop in Guangdong Xiongsu's long position.| Lotus Health vs. Beijing Wantai Biological | Lotus Health vs. Aluminum Corp of | Lotus Health vs. COL Digital Publishing | Lotus Health vs. Shaanxi Meineng Clean |
| Guangdong Xiongsu vs. Super Dragon Engineering Plastics | Guangdong Xiongsu vs. Renxin New Material | Guangdong Xiongsu vs. Hangzhou Gaoxin Rubber | Guangdong Xiongsu vs. GRINM Semiconductor Materials |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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