Correlation Between Suzhou Weizhixiang and Lotus Health
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and Lotus Health Group, you can compare the effects of market volatilities on Suzhou Weizhixiang 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 Suzhou Weizhixiang with a short position of Lotus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Lotus Health.
Diversification Opportunities for Suzhou Weizhixiang and Lotus Health
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and Lotus is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food 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 Suzhou Weizhixiang 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 Suzhou Weizhixiang Food 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 Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Lotus Health go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Lotus Health
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to generate 1.07 times more return on investment than Lotus Health. However, Suzhou Weizhixiang is 1.07 times more volatile than Lotus Health Group. It trades about 0.26 of its potential returns per unit of risk. Lotus Health Group is currently generating about 0.2 per unit of risk. If you would invest 2,110 in Suzhou Weizhixiang Food on September 3, 2024 and sell it today you would earn a total of 390.00 from holding Suzhou Weizhixiang Food or generate 18.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. Lotus Health Group
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| Lotus Health Group |
Suzhou Weizhixiang and Lotus Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and Lotus Health
The main advantage of trading using opposite Suzhou Weizhixiang and Lotus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang 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.| Suzhou Weizhixiang vs. Beijing Wantai Biological | Suzhou Weizhixiang vs. Aluminum Corp of | Suzhou Weizhixiang vs. COL Digital Publishing | Suzhou Weizhixiang vs. Shaanxi Meineng Clean |
| Lotus Health vs. Beijing Wantai Biological | Lotus Health vs. Aluminum Corp of | Lotus Health vs. COL Digital Publishing | Lotus Health vs. Shaanxi Meineng Clean |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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