Correlation Between Lotus Health and Marssenger Kitchenware
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By analyzing existing cross correlation between Lotus Health Group and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Lotus Health and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Marssenger Kitchenware.
Diversification Opportunities for Lotus Health and Marssenger Kitchenware
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lotus and Marssenger is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Lotus Health i.e., Lotus Health and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Lotus Health and Marssenger Kitchenware
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 1.15 times more return on investment than Marssenger Kitchenware. However, Lotus Health is 1.15 times more volatile than Marssenger Kitchenware Co. It trades about 0.04 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about 0.01 per unit of risk. If you would invest 518.00 in Lotus Health Group on October 29, 2024 and sell it today you would earn a total of 6.00 from holding Lotus Health Group or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotus Health Group vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| Lotus Health Group |
| Marssenger Kitchenware |
Lotus Health and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Marssenger Kitchenware
The main advantage of trading using opposite Lotus Health and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| Lotus Health vs. Wuhan Yangtze Communication | Lotus Health vs. Nanxing Furniture Machinery | Lotus Health vs. Nanjing OLO Home | Lotus Health vs. Ningbo Fangzheng Automobile |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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