Correlation Between Shanghai Broadband and Lotus Health
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By analyzing existing cross correlation between Shanghai Broadband Technology and Lotus Health Group, you can compare the effects of market volatilities on Shanghai Broadband 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 Shanghai Broadband with a short position of Lotus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and Lotus Health.
Diversification Opportunities for Shanghai Broadband and Lotus Health
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Lotus is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology 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 Shanghai Broadband 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 Shanghai Broadband Technology 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 Shanghai Broadband i.e., Shanghai Broadband and Lotus Health go up and down completely randomly.
Pair Corralation between Shanghai Broadband and Lotus Health
Assuming the 90 days trading horizon Shanghai Broadband is expected to generate 171.58 times less return on investment than Lotus Health. But when comparing it to its historical volatility, Shanghai Broadband Technology is 1.31 times less risky than Lotus Health. It trades about 0.0 of its potential returns per unit of risk. Lotus Health Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 286.00 in Lotus Health Group on August 30, 2024 and sell it today you would earn a total of 219.00 from holding Lotus Health Group or generate 76.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Broadband Technology vs. Lotus Health Group
Performance |
| Timeline |
| Shanghai Broadband |
| Lotus Health Group |
Shanghai Broadband and Lotus Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Broadband and Lotus Health
The main advantage of trading using opposite Shanghai Broadband and Lotus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband 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.| Shanghai Broadband vs. Shandong Gold Mining | Shanghai Broadband vs. Rongsheng Petrochemical Co | Shanghai Broadband vs. Inner Mongolia BaoTou | Shanghai Broadband vs. Jiangxi Ganfeng Lithium |
| Lotus Health vs. PetroChina Co Ltd | Lotus Health vs. China Mobile Limited | Lotus Health vs. Ping An Insurance | Lotus Health vs. China Petroleum Chemical |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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