Correlation Between Lotus Health and China Satellite
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By analyzing existing cross correlation between Lotus Health Group and China Satellite Communications, you can compare the effects of market volatilities on Lotus Health and China Satellite 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 China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and China Satellite.
Diversification Opportunities for Lotus Health and China Satellite
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lotus and China is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and China Satellite Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Satellite Comm 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 China Satellite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Satellite Comm has no effect on the direction of Lotus Health i.e., Lotus Health and China Satellite go up and down completely randomly.
Pair Corralation between Lotus Health and China Satellite
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 2.26 times more return on investment than China Satellite. However, Lotus Health is 2.26 times more volatile than China Satellite Communications. It trades about -0.12 of its potential returns per unit of risk. China Satellite Communications is currently generating about -0.34 per unit of risk. If you would invest 578.00 in Lotus Health Group on October 11, 2024 and sell it today you would lose (85.00) from holding Lotus Health Group or give up 14.71% 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. China Satellite Communications
Performance |
| Timeline |
| Lotus Health Group |
| China Satellite Comm |
Lotus Health and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and China Satellite
The main advantage of trading using opposite Lotus Health and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, China Satellite 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 China Satellite will offset losses from the drop in China Satellite's long position.| Lotus Health vs. Shandong Longquan Pipeline | Lotus Health vs. Qilu Bank Co | Lotus Health vs. Montage Technology Co | Lotus Health vs. Jinhe Biotechnology Co |
| China Satellite vs. Yunnan Jianzhijia Health Chain | China Satellite vs. Goodwill E Health | China Satellite vs. HeBei Jinniu Chemical | China Satellite 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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