Correlation Between Lotus Health and Shuhua Sports
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By analyzing existing cross correlation between Lotus Health Group and Shuhua Sports Co, you can compare the effects of market volatilities on Lotus Health and Shuhua Sports 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 Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Shuhua Sports.
Diversification Opportunities for Lotus Health and Shuhua Sports
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lotus and Shuhua is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports 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 Shuhua Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuhua Sports has no effect on the direction of Lotus Health i.e., Lotus Health and Shuhua Sports go up and down completely randomly.
Pair Corralation between Lotus Health and Shuhua Sports
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 2.09 times more return on investment than Shuhua Sports. However, Lotus Health is 2.09 times more volatile than Shuhua Sports Co. It trades about 0.17 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about 0.18 per unit of risk. If you would invest 428.00 in Lotus Health Group on August 24, 2024 and sell it today you would earn a total of 57.00 from holding Lotus Health Group or generate 13.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotus Health Group vs. Shuhua Sports Co
Performance |
| Timeline |
| Lotus Health Group |
| Shuhua Sports |
Lotus Health and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Shuhua Sports
The main advantage of trading using opposite Lotus Health and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Shuhua Sports 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 Shuhua Sports will offset losses from the drop in Shuhua Sports' long position.| Lotus Health vs. Aluminum Corp of | Lotus Health vs. COL Digital Publishing | Lotus Health vs. Shaanxi Meineng Clean | Lotus Health vs. Gansu Huangtai Wine marketing |
| Shuhua Sports vs. Kweichow Moutai Co | Shuhua Sports vs. Contemporary Amperex Technology | Shuhua Sports vs. G bits Network Technology | Shuhua Sports vs. Beijing Roborock Technology |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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