Correlation Between Lotus Health and Sinofibers Technology
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By analyzing existing cross correlation between Lotus Health Group and Sinofibers Technology Co, you can compare the effects of market volatilities on Lotus Health and Sinofibers Technology 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 Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Sinofibers Technology.
Diversification Opportunities for Lotus Health and Sinofibers Technology
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lotus and Sinofibers is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology 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 Sinofibers Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinofibers Technology has no effect on the direction of Lotus Health i.e., Lotus Health and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Lotus Health and Sinofibers Technology
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 1.1 times more return on investment than Sinofibers Technology. However, Lotus Health is 1.1 times more volatile than Sinofibers Technology Co. It trades about 0.07 of its potential returns per unit of risk. Sinofibers Technology Co is currently generating about -0.03 per unit of risk. If you would invest 281.00 in Lotus Health Group on September 4, 2024 and sell it today you would earn a total of 239.00 from holding Lotus Health Group or generate 85.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotus Health Group vs. Sinofibers Technology Co
Performance |
| Timeline |
| Lotus Health Group |
| Sinofibers Technology |
Lotus Health and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Sinofibers Technology
The main advantage of trading using opposite Lotus Health and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Sinofibers Technology 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 Sinofibers Technology will offset losses from the drop in Sinofibers Technology's long position.| Lotus Health vs. Poly Real Estate | Lotus Health vs. China Vanke Co | Lotus Health vs. China Merchants Shekou | Lotus Health vs. Huafa Industrial Co |
| Sinofibers Technology vs. Zijin Mining Group | Sinofibers Technology vs. Wanhua Chemical Group | Sinofibers Technology vs. Baoshan Iron Steel | Sinofibers Technology vs. Shandong Gold Mining |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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