Correlation Between Lotus Health and Northern United
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By analyzing existing cross correlation between Lotus Health Group and Northern United Publishing, you can compare the effects of market volatilities on Lotus Health and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Northern United.
Diversification Opportunities for Lotus Health and Northern United
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lotus and Northern is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of Lotus Health i.e., Lotus Health and Northern United go up and down completely randomly.
Pair Corralation between Lotus Health and Northern United
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 1.75 times more return on investment than Northern United. However, Lotus Health is 1.75 times more volatile than Northern United Publishing. It trades about -0.19 of its potential returns per unit of risk. Northern United Publishing is currently generating about -0.4 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotus Health Group vs. Northern United Publishing
Performance |
| Timeline |
| Lotus Health Group |
| Northern United Publ |
Lotus Health and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Northern United
The main advantage of trading using opposite Lotus Health and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United'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 |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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