Correlation Between Lotus Health and Joincare Pharmaceutical
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By analyzing existing cross correlation between Lotus Health Group and Joincare Pharmaceutical Group, you can compare the effects of market volatilities on Lotus Health and Joincare Pharmaceutical 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 Joincare Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Joincare Pharmaceutical.
Diversification Opportunities for Lotus Health and Joincare Pharmaceutical
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lotus and Joincare is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Joincare Pharmaceutical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joincare Pharmaceutical 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 Joincare Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joincare Pharmaceutical has no effect on the direction of Lotus Health i.e., Lotus Health and Joincare Pharmaceutical go up and down completely randomly.
Pair Corralation between Lotus Health and Joincare Pharmaceutical
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 1.49 times more return on investment than Joincare Pharmaceutical. However, Lotus Health is 1.49 times more volatile than Joincare Pharmaceutical Group. It trades about 0.1 of its potential returns per unit of risk. Joincare Pharmaceutical Group is currently generating about -0.03 per unit of risk. If you would invest 386.00 in Lotus Health Group on September 2, 2024 and sell it today you would earn a total of 144.00 from holding Lotus Health Group or generate 37.31% 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. Joincare Pharmaceutical Group
Performance |
| Timeline |
| Lotus Health Group |
| Joincare Pharmaceutical |
Lotus Health and Joincare Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Joincare Pharmaceutical
The main advantage of trading using opposite Lotus Health and Joincare Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Joincare Pharmaceutical 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 Joincare Pharmaceutical will offset losses from the drop in Joincare Pharmaceutical's long position.| Lotus Health vs. AVCON Information Tech | Lotus Health vs. Heilongjiang Transport Development | Lotus Health vs. Zhongshan Broad Ocean Motor | Lotus Health vs. YLZ Information Tech |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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