Correlation Between Ping An and Lotus Health
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By analyzing existing cross correlation between Ping An Insurance and Lotus Health Group, you can compare the effects of market volatilities on Ping An 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 Ping An with a short position of Lotus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Lotus Health.
Diversification Opportunities for Ping An and Lotus Health
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ping and Lotus is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance 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 Ping An 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 Ping An Insurance 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 Ping An i.e., Ping An and Lotus Health go up and down completely randomly.
Pair Corralation between Ping An and Lotus Health
Assuming the 90 days trading horizon Ping An is expected to generate 1.5 times less return on investment than Lotus Health. But when comparing it to its historical volatility, Ping An Insurance is 1.31 times less risky than Lotus Health. It trades about 0.09 of its potential returns per unit of risk. Lotus Health Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 389.00 in Lotus Health Group on September 1, 2024 and sell it today you would earn a total of 141.00 from holding Lotus Health Group or generate 36.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Lotus Health Group
Performance |
| Timeline |
| Ping An Insurance |
| Lotus Health Group |
Ping An and Lotus Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Lotus Health
The main advantage of trading using opposite Ping An and Lotus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An 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.| Ping An vs. Industrial and Commercial | Ping An vs. China Construction Bank | Ping An vs. Bank of China | Ping An vs. Agricultural Bank of |
| Lotus Health vs. Suzhou Weizhixiang Food | Lotus Health vs. Xiwang Foodstuffs Co | Lotus Health vs. Cicc Fund Management | Lotus Health vs. HaiXin Foods Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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