Correlation Between Kweichow Moutai and Lotus Health
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kweichow Moutai Co and Lotus Health Group, you can compare the effects of market volatilities on Kweichow Moutai and Lotus Health 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 Kweichow Moutai with a short position of Lotus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Lotus Health.
Diversification Opportunities for Kweichow Moutai and Lotus Health
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kweichow and Lotus is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Lotus Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotus Health Group and Kweichow Moutai 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 Kweichow Moutai Co are associated (or correlated) with Lotus Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotus Health Group has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Lotus Health go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Lotus Health
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Lotus Health. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 4.65 times less risky than Lotus Health. The stock trades about -0.02 of its potential returns per unit of risk. The Lotus Health Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 508.00 in Lotus Health Group on November 5, 2024 and sell it today you would lose (5.00) from holding Lotus Health Group or give up 0.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Lotus Health Group
Performance |
| Timeline |
| Kweichow Moutai |
| Lotus Health Group |
Kweichow Moutai and Lotus Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Lotus Health
The main advantage of trading using opposite Kweichow Moutai and Lotus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Lotus Health 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 Lotus Health will offset losses from the drop in Lotus Health's long position.| Kweichow Moutai vs. Anji Foodstuff Co | Kweichow Moutai vs. JuneYao Dairy Co | Kweichow Moutai vs. Guizhou Chanhen Chemical | Kweichow Moutai vs. Xinxiang Chemical Fiber |
| Lotus Health vs. Vohringer Home Technology | Lotus Health vs. Hongrun Construction Group | Lotus Health vs. Quectel Wireless Solutions | Lotus Health vs. Beijing Kingsoft Office |
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
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |