Correlation Between Shenyang Chemical and Lotus Health
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By analyzing existing cross correlation between Shenyang Chemical Industry and Lotus Health Group, you can compare the effects of market volatilities on Shenyang Chemical 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 Shenyang Chemical with a short position of Lotus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Lotus Health.
Diversification Opportunities for Shenyang Chemical and Lotus Health
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenyang and Lotus is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry 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 Shenyang Chemical 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 Shenyang Chemical Industry 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 Shenyang Chemical i.e., Shenyang Chemical and Lotus Health go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Lotus Health
Assuming the 90 days trading horizon Shenyang Chemical is expected to generate 1.17 times less return on investment than Lotus Health. But when comparing it to its historical volatility, Shenyang Chemical Industry is 1.11 times less risky than Lotus Health. It trades about 0.24 of its potential returns per unit of risk. Lotus Health Group is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 319.00 in Lotus Health Group on September 10, 2024 and sell it today you would earn a total of 197.00 from holding Lotus Health Group or generate 61.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shenyang Chemical Industry vs. Lotus Health Group
Performance |
Timeline |
Shenyang Chemical |
Lotus Health Group |
Shenyang Chemical and Lotus Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenyang Chemical and Lotus Health
The main advantage of trading using opposite Shenyang Chemical and Lotus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical 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.Shenyang Chemical vs. Zijin Mining Group | Shenyang Chemical vs. Wanhua Chemical Group | Shenyang Chemical vs. Baoshan Iron Steel | Shenyang Chemical vs. Rongsheng Petrochemical Co |
Lotus Health vs. China Mobile Limited | Lotus Health vs. Agricultural Bank of | Lotus Health vs. Industrial and Commercial | Lotus Health vs. China State Construction |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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