Correlation Between Lotus Health and Cathay Biotech
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lotus Health Group and Cathay Biotech, you can compare the effects of market volatilities on Lotus Health and Cathay Biotech 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 Cathay Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Cathay Biotech.
Diversification Opportunities for Lotus Health and Cathay Biotech
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lotus and Cathay is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Cathay Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathay Biotech 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 Cathay Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathay Biotech has no effect on the direction of Lotus Health i.e., Lotus Health and Cathay Biotech go up and down completely randomly.
Pair Corralation between Lotus Health and Cathay Biotech
Assuming the 90 days trading horizon Lotus Health Group is expected to under-perform the Cathay Biotech. In addition to that, Lotus Health is 3.47 times more volatile than Cathay Biotech. It trades about -0.04 of its total potential returns per unit of risk. Cathay Biotech is currently generating about -0.06 per unit of volatility. If you would invest 4,126 in Cathay Biotech on October 22, 2024 and sell it today you would lose (102.00) from holding Cathay Biotech or give up 2.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Lotus Health Group vs. Cathay Biotech
Performance |
| Timeline |
| Lotus Health Group |
| Cathay Biotech |
Lotus Health and Cathay Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Cathay Biotech
The main advantage of trading using opposite Lotus Health and Cathay Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Cathay Biotech 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 Cathay Biotech will offset losses from the drop in Cathay Biotech's long position.| Lotus Health vs. Zhengzhou Coal Mining | Lotus Health vs. Maoming Petro Chemical Shihua | Lotus Health vs. Wuxi Chemical Equipment | Lotus Health vs. Guocheng Mining Co |
| Cathay Biotech vs. Shenzhen Noposion Agrochemicals | Cathay Biotech vs. Lotus Health Group | Cathay Biotech vs. Hangzhou Minsheng Healthcare | Cathay Biotech vs. Thinkingdom Media 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |