Correlation Between Lotus Health and Ningbo Jianan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lotus Health Group and Ningbo Jianan Electronics, you can compare the effects of market volatilities on Lotus Health and Ningbo Jianan 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 Ningbo Jianan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Ningbo Jianan.
Diversification Opportunities for Lotus Health and Ningbo Jianan
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lotus and Ningbo is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Ningbo Jianan Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jianan Electronics 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 Ningbo Jianan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jianan Electronics has no effect on the direction of Lotus Health i.e., Lotus Health and Ningbo Jianan go up and down completely randomly.
Pair Corralation between Lotus Health and Ningbo Jianan
Assuming the 90 days trading horizon Lotus Health Group is expected to under-perform the Ningbo Jianan. In addition to that, Lotus Health is 2.19 times more volatile than Ningbo Jianan Electronics. It trades about -0.19 of its total potential returns per unit of risk. Ningbo Jianan Electronics is currently generating about -0.32 per unit of volatility. If you would invest 2,377 in Ningbo Jianan Electronics on October 16, 2024 and sell it today you would lose (378.00) from holding Ningbo Jianan Electronics or give up 15.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotus Health Group vs. Ningbo Jianan Electronics
Performance |
| Timeline |
| Lotus Health Group |
| Ningbo Jianan Electronics |
Lotus Health and Ningbo Jianan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Ningbo Jianan
The main advantage of trading using opposite Lotus Health and Ningbo Jianan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Ningbo Jianan 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 Ningbo Jianan will offset losses from the drop in Ningbo Jianan's long position.| Lotus Health vs. Guangdong Qunxing Toys | Lotus Health vs. Shenzhen AV Display Co | Lotus Health vs. Juneyao Airlines | Lotus Health vs. Xinhua Winshare Publishing |
| Ningbo Jianan vs. Kuang Chi Technologies | Ningbo Jianan vs. Lotus Health Group | Ningbo Jianan vs. FSPG Hi Tech Co | Ningbo Jianan vs. Unisplendour Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Directory Find actively traded commodities issued by global exchanges |