Correlation Between Lotus Bio-Technology and Argo Living

Can any of the company-specific risk be diversified away by investing in both Lotus Bio-Technology and Argo Living at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Lotus Bio-Technology and Argo Living into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lotus Bio Technology Development and Argo Living Soils, you can compare the effects of market volatilities on Lotus Bio-Technology and Argo Living 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 Lotus Bio-Technology with a short position of Argo Living. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Bio-Technology and Argo Living.

Diversification Opportunities for Lotus Bio-Technology and Argo Living

0.0

Correlation Coefficient

Lotus Bio-Technology  Argo Living

Pay attention - limited upside

The 3 months correlation between Lotus and Argo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Bio Technology Developme and Argo Living Soils in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Living Soils and Lotus Bio-Technology 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 Lotus Bio Technology Development are associated (or correlated) with Argo Living. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Living Soils has no effect on the direction of Lotus Bio-Technology i.e., Lotus Bio-Technology and Argo Living go up and down completely randomly.

Pair Corralation between Lotus Bio-Technology and Argo Living

If you would invest  39.00  in Argo Living Soils on May 16, 2025 and sell it today you would earn a total of  15.00  from holding Argo Living Soils or generate 38.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Lotus Bio Technology Developme  vs.  Argo Living Soils

Lotus Bio Technology

Risk-Adjusted Performance

Weakest

Over the last 90 days Lotus Bio Technology Development has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Lotus Bio-Technology is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Argo Living Soils

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Argo Living Soils are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Argo Living reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lotus Bio-Technology and Argo Living

The main advantage of trading using opposite Lotus Bio-Technology and Argo Living positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Bio-Technology position performs unexpectedly, Argo Living 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 Argo Living will offset losses from the drop in Argo Living's long position.

The idea behind Lotus Bio Technology Development and Argo Living Soils pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.