Correlation Between Lotus Health and Kweichow Moutai
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By analyzing existing cross correlation between Lotus Health Group and Kweichow Moutai Co, you can compare the effects of market volatilities on Lotus Health and Kweichow Moutai 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 Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Kweichow Moutai.
Diversification Opportunities for Lotus Health and Kweichow Moutai
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lotus and Kweichow is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai 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 Kweichow Moutai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kweichow Moutai has no effect on the direction of Lotus Health i.e., Lotus Health and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Lotus Health and Kweichow Moutai
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 2.2 times more return on investment than Kweichow Moutai. However, Lotus Health is 2.2 times more volatile than Kweichow Moutai Co. It trades about 0.06 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.02 per unit of risk. If you would invest 269.00 in Lotus Health Group on November 6, 2024 and sell it today you would earn a total of 234.00 from holding Lotus Health Group or generate 86.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotus Health Group vs. Kweichow Moutai Co
Performance |
| Timeline |
| Lotus Health Group |
| Kweichow Moutai |
Lotus Health and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Kweichow Moutai
The main advantage of trading using opposite Lotus Health and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Kweichow Moutai 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 Kweichow Moutai will offset losses from the drop in Kweichow Moutai's long position.| Lotus Health vs. Zhejiang Yongjin Metal | Lotus Health vs. Chongqing Shunbo Aluminum | Lotus Health vs. Zhejiang Huatong Meat | Lotus Health vs. Heilongjiang Transport Development |
| Kweichow Moutai vs. Anji Foodstuff Co | Kweichow Moutai vs. JuneYao Dairy Co | Kweichow Moutai vs. Guizhou Chanhen Chemical | Kweichow Moutai vs. Xinxiang Chemical Fiber |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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