Correlation Between China Mobile and Lotus Health
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By analyzing existing cross correlation between China Mobile Limited and Lotus Health Group, you can compare the effects of market volatilities on China Mobile 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 China Mobile with a short position of Lotus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Lotus Health.
Diversification Opportunities for China Mobile and Lotus Health
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Lotus is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited 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 China Mobile 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 China Mobile Limited 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 China Mobile i.e., China Mobile and Lotus Health go up and down completely randomly.
Pair Corralation between China Mobile and Lotus Health
Assuming the 90 days trading horizon China Mobile is expected to generate 1.65 times less return on investment than Lotus Health. But when comparing it to its historical volatility, China Mobile Limited is 1.73 times less risky than Lotus Health. It trades about 0.06 of its potential returns per unit of risk. Lotus Health Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 290.00 in Lotus Health Group on August 30, 2024 and sell it today you would earn a total of 215.00 from holding Lotus Health Group or generate 74.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Lotus Health Group
Performance |
| Timeline |
| China Mobile Limited |
| Lotus Health Group |
China Mobile and Lotus Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Lotus Health
The main advantage of trading using opposite China Mobile and Lotus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile 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.| China Mobile vs. Industrial and Commercial | China Mobile vs. Agricultural Bank of | China Mobile vs. China Construction Bank | China Mobile vs. Bank of China |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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