Correlation Between Zhengzhou Coal and Lotus Health
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By analyzing existing cross correlation between Zhengzhou Coal Mining and Lotus Health Group, you can compare the effects of market volatilities on Zhengzhou Coal 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 Zhengzhou Coal with a short position of Lotus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and Lotus Health.
Diversification Opportunities for Zhengzhou Coal and Lotus Health
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhengzhou and Lotus is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining 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 Zhengzhou Coal 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 Zhengzhou Coal Mining 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 Zhengzhou Coal i.e., Zhengzhou Coal and Lotus Health go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and Lotus Health
Assuming the 90 days trading horizon Zhengzhou Coal is expected to generate 3.63 times less return on investment than Lotus Health. But when comparing it to its historical volatility, Zhengzhou Coal Mining is 1.93 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 0.11 of returns per unit of risk over similar time horizon. If you would invest 328.00 in Lotus Health Group on November 3, 2024 and sell it today you would earn a total of 175.00 from holding Lotus Health Group or generate 53.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengzhou Coal Mining vs. Lotus Health Group
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| Lotus Health Group |
Zhengzhou Coal and Lotus Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and Lotus Health
The main advantage of trading using opposite Zhengzhou Coal and Lotus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal 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.| Zhengzhou Coal vs. GRINM Semiconductor Materials | Zhengzhou Coal vs. Beijing Mainstreets Investment | Zhengzhou Coal vs. Shenzhen Centralcon Investment | Zhengzhou Coal vs. Ingenic Semiconductor |
| Lotus Health vs. Silkroad Visual Technology | Lotus Health vs. Sichuan Fulin Transportation | Lotus Health vs. RoadMain T Co | Lotus Health vs. Unisplendour Corp |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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