Correlation Between Industrial and Lotus Health
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By analyzing existing cross correlation between Industrial and Commercial and Lotus Health Group, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Lotus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Lotus Health.
Diversification Opportunities for Industrial and Lotus Health
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Industrial and Lotus is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Lotus Health go up and down completely randomly.
Pair Corralation between Industrial and Lotus Health
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.28 times more return on investment than Lotus Health. However, Industrial and Commercial is 3.64 times less risky than Lotus Health. It trades about 0.2 of its potential returns per unit of risk. Lotus Health Group is currently generating about 0.03 per unit of risk. If you would invest 604.00 in Industrial and Commercial on October 12, 2024 and sell it today you would earn a total of 67.00 from holding Industrial and Commercial or generate 11.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Lotus Health Group
Performance |
| Timeline |
| Industrial and Commercial |
| Lotus Health Group |
Industrial and Lotus Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Lotus Health
The main advantage of trading using opposite Industrial and Lotus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. Hongrun Construction Group | Industrial vs. Hengkang Medical Group | Industrial vs. Long Yuan Construction | Industrial vs. Zhongzhu Medical Holdings |
| Lotus Health vs. Industrial and Commercial | Lotus Health vs. Agricultural Bank of | Lotus Health vs. China Construction Bank | Lotus Health vs. Bank of China |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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