Correlation Between Lotus Health and Chengdu B
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By analyzing existing cross correlation between Lotus Health Group and Chengdu B ray Media, you can compare the effects of market volatilities on Lotus Health and Chengdu B 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 Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Chengdu B.
Diversification Opportunities for Lotus Health and Chengdu B
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lotus and Chengdu is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of Lotus Health i.e., Lotus Health and Chengdu B go up and down completely randomly.
Pair Corralation between Lotus Health and Chengdu B
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 1.01 times more return on investment than Chengdu B. However, Lotus Health is 1.01 times more volatile than Chengdu B ray Media. It trades about -0.19 of its potential returns per unit of risk. Chengdu B ray Media is currently generating about -0.24 per unit of risk. If you would invest 578.00 in Lotus Health Group on October 14, 2024 and sell it today you would lose (129.00) from holding Lotus Health Group or give up 22.32% 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. Chengdu B ray Media
Performance |
| Timeline |
| Lotus Health Group |
| Chengdu B ray |
Lotus Health and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Chengdu B
The main advantage of trading using opposite Lotus Health and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B's long position.| Lotus Health vs. Sunwave Communications Co | Lotus Health vs. Xiangyang Automobile Bearing | Lotus Health vs. Fibocom Wireless | Lotus Health vs. Anhui Jianghuai Automobile |
| Chengdu B vs. Haima Automobile Group | Chengdu B vs. SSAW Hotels Resorts | Chengdu B vs. Everjoy Health Group | Chengdu B vs. Lotus Health Group |
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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