Correlation Between Aluminum Corp and Lotus Health
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By analyzing existing cross correlation between Aluminum Corp of and Lotus Health Group, you can compare the effects of market volatilities on Aluminum Corp 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 Aluminum Corp with a short position of Lotus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Lotus Health.
Diversification Opportunities for Aluminum Corp and Lotus Health
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aluminum and Lotus is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of 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 Aluminum Corp 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 Aluminum Corp of 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 Aluminum Corp i.e., Aluminum Corp and Lotus Health go up and down completely randomly.
Pair Corralation between Aluminum Corp and Lotus Health
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the Lotus Health. But the stock apears to be less risky and, when comparing its historical volatility, Aluminum Corp of is 1.41 times less risky than Lotus Health. The stock trades about -0.21 of its potential returns per unit of risk. The Lotus Health Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 465.00 in Lotus Health Group on August 28, 2024 and sell it today you would earn a total of 17.00 from holding Lotus Health Group or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Lotus Health Group
Performance |
| Timeline |
| Aluminum Corp |
| Lotus Health Group |
Aluminum Corp and Lotus Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Lotus Health
The main advantage of trading using opposite Aluminum Corp and Lotus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp 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.| Aluminum Corp vs. Wanhua Chemical Group | Aluminum Corp vs. Shandong Gold Mining | Aluminum Corp vs. Rongsheng Petrochemical Co | Aluminum Corp vs. Inner Mongolia BaoTou |
| Lotus Health vs. China Petroleum Chemical | Lotus Health vs. PetroChina Co Ltd | Lotus Health vs. China State Construction | Lotus Health vs. China Railway Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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