Correlation Between Lotus Health and Southern PublishingMedia
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By analyzing existing cross correlation between Lotus Health Group and Southern PublishingMedia Co, you can compare the effects of market volatilities on Lotus Health and Southern PublishingMedia 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 Southern PublishingMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Southern PublishingMedia.
Diversification Opportunities for Lotus Health and Southern PublishingMedia
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lotus and Southern is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Southern PublishingMedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern PublishingMedia 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 Southern PublishingMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern PublishingMedia has no effect on the direction of Lotus Health i.e., Lotus Health and Southern PublishingMedia go up and down completely randomly.
Pair Corralation between Lotus Health and Southern PublishingMedia
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 0.91 times more return on investment than Southern PublishingMedia. However, Lotus Health Group is 1.1 times less risky than Southern PublishingMedia. It trades about 0.07 of its potential returns per unit of risk. Southern PublishingMedia Co is currently generating about 0.05 per unit of risk. If you would invest 262.00 in Lotus Health Group on December 12, 2024 and sell it today you would earn a total of 418.00 from holding Lotus Health Group or generate 159.54% 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. Southern PublishingMedia Co
Performance |
| Timeline |
| Lotus Health Group |
| Southern PublishingMedia |
Lotus Health and Southern PublishingMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Southern PublishingMedia
The main advantage of trading using opposite Lotus Health and Southern PublishingMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Southern PublishingMedia 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 Southern PublishingMedia will offset losses from the drop in Southern PublishingMedia's long position.| Lotus Health vs. Zhonghang Electronic Measuring | ||
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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