Correlation Between Shuhua Sports and Lotus Health
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By analyzing existing cross correlation between Shuhua Sports Co and Lotus Health Group, you can compare the effects of market volatilities on Shuhua Sports 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 Shuhua Sports with a short position of Lotus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Lotus Health.
Diversification Opportunities for Shuhua Sports and Lotus Health
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shuhua and Lotus is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co 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 Shuhua Sports 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 Shuhua Sports Co 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 Shuhua Sports i.e., Shuhua Sports and Lotus Health go up and down completely randomly.
Pair Corralation between Shuhua Sports and Lotus Health
Assuming the 90 days trading horizon Shuhua Sports is expected to generate 1.93 times less return on investment than Lotus Health. But when comparing it to its historical volatility, Shuhua Sports Co is 2.09 times less risky than Lotus Health. It trades about 0.18 of its potential returns per unit of risk. Lotus Health Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 428.00 in Lotus Health Group on August 24, 2024 and sell it today you would earn a total of 57.00 from holding Lotus Health Group or generate 13.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Lotus Health Group
Performance |
| Timeline |
| Shuhua Sports |
| Lotus Health Group |
Shuhua Sports and Lotus Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Lotus Health
The main advantage of trading using opposite Shuhua Sports and Lotus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports 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.| Shuhua Sports vs. Kweichow Moutai Co | Shuhua Sports vs. Contemporary Amperex Technology | Shuhua Sports vs. G bits Network Technology | Shuhua Sports vs. Beijing Roborock Technology |
| Lotus Health vs. Aluminum Corp of | Lotus Health vs. COL Digital Publishing | Lotus Health vs. Shaanxi Meineng Clean | Lotus Health vs. Gansu Huangtai Wine marketing |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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