Correlation Between Lotus Health and Beijing Sanyuan
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By analyzing existing cross correlation between Lotus Health Group and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Lotus Health and Beijing Sanyuan 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 Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Beijing Sanyuan.
Diversification Opportunities for Lotus Health and Beijing Sanyuan
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lotus and Beijing is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Beijing Sanyuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sanyuan Foods 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 Beijing Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sanyuan Foods has no effect on the direction of Lotus Health i.e., Lotus Health and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Lotus Health and Beijing Sanyuan
Assuming the 90 days trading horizon Lotus Health Group is expected to under-perform the Beijing Sanyuan. In addition to that, Lotus Health is 2.52 times more volatile than Beijing Sanyuan Foods. It trades about -0.2 of its total potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about -0.21 per unit of volatility. If you would invest 445.00 in Beijing Sanyuan Foods on November 3, 2024 and sell it today you would lose (36.00) from holding Beijing Sanyuan Foods or give up 8.09% 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. Beijing Sanyuan Foods
Performance |
| Timeline |
| Lotus Health Group |
| Beijing Sanyuan Foods |
Lotus Health and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Beijing Sanyuan
The main advantage of trading using opposite Lotus Health and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Beijing Sanyuan 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 Beijing Sanyuan will offset losses from the drop in Beijing Sanyuan's long position.| Lotus Health vs. Silkroad Visual Technology | Lotus Health vs. Sichuan Fulin Transportation | Lotus Health vs. RoadMain T Co | Lotus Health vs. Unisplendour Corp |
| Beijing Sanyuan vs. Quectel Wireless Solutions | Beijing Sanyuan vs. Xiamen Goldenhome Co | Beijing Sanyuan vs. Zoy Home Furnishing | Beijing Sanyuan vs. Chongqing Changan 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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