Correlation Between Lotus Health and Hangzhou Minsheng
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By analyzing existing cross correlation between Lotus Health Group and Hangzhou Minsheng Healthcare, you can compare the effects of market volatilities on Lotus Health and Hangzhou Minsheng 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 Hangzhou Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Hangzhou Minsheng.
Diversification Opportunities for Lotus Health and Hangzhou Minsheng
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lotus and Hangzhou is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Hangzhou Minsheng Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Minsheng 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 Hangzhou Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Minsheng has no effect on the direction of Lotus Health i.e., Lotus Health and Hangzhou Minsheng go up and down completely randomly.
Pair Corralation between Lotus Health and Hangzhou Minsheng
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 0.87 times more return on investment than Hangzhou Minsheng. However, Lotus Health Group is 1.15 times less risky than Hangzhou Minsheng. It trades about 0.06 of its potential returns per unit of risk. Hangzhou Minsheng Healthcare is currently generating about -0.06 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 | Strong |
| Accuracy | 62.68% |
| Values | Daily Returns |
Lotus Health Group vs. Hangzhou Minsheng Healthcare
Performance |
| Timeline |
| Lotus Health Group |
| Hangzhou Minsheng |
Lotus Health and Hangzhou Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Hangzhou Minsheng
The main advantage of trading using opposite Lotus Health and Hangzhou Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Hangzhou Minsheng 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 Hangzhou Minsheng will offset losses from the drop in Hangzhou Minsheng'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 |
| Hangzhou Minsheng vs. Shenzhen Centralcon Investment | Hangzhou Minsheng vs. HeNan Splendor Science | Hangzhou Minsheng vs. Guosheng Financial Holding | Hangzhou Minsheng vs. Ningbo Tech Bank 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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