Correlation Between Yunnan Jianzhijia and Lotus Health
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By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and Lotus Health Group, you can compare the effects of market volatilities on Yunnan Jianzhijia 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 Yunnan Jianzhijia with a short position of Lotus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and Lotus Health.
Diversification Opportunities for Yunnan Jianzhijia and Lotus Health
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yunnan and Lotus is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain 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 Yunnan Jianzhijia 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 Yunnan Jianzhijia Health Chain 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 Yunnan Jianzhijia i.e., Yunnan Jianzhijia and Lotus Health go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and Lotus Health
Assuming the 90 days trading horizon Yunnan Jianzhijia is expected to generate 1.28 times less return on investment than Lotus Health. In addition to that, Yunnan Jianzhijia is 1.35 times more volatile than Lotus Health Group. It trades about 0.15 of its total potential returns per unit of risk. Lotus Health Group is currently generating about 0.26 per unit of volatility. If you would invest 321.00 in Lotus Health Group on August 31, 2024 and sell it today you would earn a total of 209.00 from holding Lotus Health Group or generate 65.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Yunnan Jianzhijia Health Chain vs. Lotus Health Group
Performance |
Timeline |
Yunnan Jianzhijia |
Lotus Health Group |
Yunnan Jianzhijia and Lotus Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yunnan Jianzhijia and Lotus Health
The main advantage of trading using opposite Yunnan Jianzhijia and Lotus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia 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.Yunnan Jianzhijia vs. Lutian Machinery Co | Yunnan Jianzhijia vs. PetroChina Co Ltd | Yunnan Jianzhijia vs. Bank of China | Yunnan Jianzhijia vs. Gansu Jiu Steel |
Lotus Health vs. Lutian Machinery Co | Lotus Health vs. PetroChina Co Ltd | Lotus Health vs. Bank of China | Lotus Health vs. Gansu Jiu Steel |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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