Correlation Between Lotus Health and Beijing Baolande
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By analyzing existing cross correlation between Lotus Health Group and Beijing Baolande Software, you can compare the effects of market volatilities on Lotus Health and Beijing Baolande 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 Beijing Baolande. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Beijing Baolande.
Diversification Opportunities for Lotus Health and Beijing Baolande
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lotus and Beijing is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Beijing Baolande Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Baolande Software 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 Beijing Baolande. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Baolande Software has no effect on the direction of Lotus Health i.e., Lotus Health and Beijing Baolande go up and down completely randomly.
Pair Corralation between Lotus Health and Beijing Baolande
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 1.23 times more return on investment than Beijing Baolande. However, Lotus Health is 1.23 times more volatile than Beijing Baolande Software. It trades about 0.0 of its potential returns per unit of risk. Beijing Baolande Software is currently generating about -0.06 per unit of risk. If you would invest 530.00 in Lotus Health Group on October 30, 2024 and sell it today you would lose (27.00) from holding Lotus Health Group or give up 5.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotus Health Group vs. Beijing Baolande Software
Performance |
| Timeline |
| Lotus Health Group |
| Beijing Baolande Software |
Lotus Health and Beijing Baolande Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Beijing Baolande
The main advantage of trading using opposite Lotus Health and Beijing Baolande positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Beijing Baolande 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 Beijing Baolande will offset losses from the drop in Beijing Baolande's long position.| Lotus Health vs. Healthcare Co | Lotus Health vs. Everjoy Health Group | Lotus Health vs. GRG Banking Equipment | Lotus Health vs. Shanghai Rongtai Health |
| Beijing Baolande vs. Bank of China | Beijing Baolande vs. Kweichow Moutai Co | Beijing Baolande vs. PetroChina Co Ltd | Beijing Baolande vs. Bank of Communications |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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