Correlation Between Lotus Health and Agricultural Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lotus Health Group and Agricultural Bank of, you can compare the effects of market volatilities on Lotus Health and Agricultural Bank 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 Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Agricultural Bank.
Diversification Opportunities for Lotus Health and Agricultural Bank
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lotus and Agricultural is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank 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 Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of Lotus Health i.e., Lotus Health and Agricultural Bank go up and down completely randomly.
Pair Corralation between Lotus Health and Agricultural Bank
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 2.53 times more return on investment than Agricultural Bank. However, Lotus Health is 2.53 times more volatile than Agricultural Bank of. It trades about 0.06 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.11 per unit of risk. If you would invest 265.00 in Lotus Health Group on November 7, 2024 and sell it today you would earn a total of 238.00 from holding Lotus Health Group or generate 89.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotus Health Group vs. Agricultural Bank of
Performance |
| Timeline |
| Lotus Health Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Agricultural Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Lotus Health and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Agricultural Bank
The main advantage of trading using opposite Lotus Health and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Agricultural Bank 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 Agricultural Bank will offset losses from the drop in Agricultural Bank's long position.The idea behind Lotus Health Group and Agricultural Bank of pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |