Correlation Between Autocorp Holding and LH Hotel
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By analyzing existing cross correlation between Autocorp Holding Public and LH Hotel Leasehold, you can compare the effects of market volatilities on Autocorp Holding and LH Hotel 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 Autocorp Holding with a short position of LH Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autocorp Holding and LH Hotel.
Diversification Opportunities for Autocorp Holding and LH Hotel
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Autocorp and LHHOTEL is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Autocorp Holding Public and LH Hotel Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LH Hotel Leasehold and Autocorp Holding 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 Autocorp Holding Public are associated (or correlated) with LH Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LH Hotel Leasehold has no effect on the direction of Autocorp Holding i.e., Autocorp Holding and LH Hotel go up and down completely randomly.
Pair Corralation between Autocorp Holding and LH Hotel
Assuming the 90 days trading horizon Autocorp Holding Public is expected to generate 38.79 times more return on investment than LH Hotel. However, Autocorp Holding is 38.79 times more volatile than LH Hotel Leasehold. It trades about 0.04 of its potential returns per unit of risk. LH Hotel Leasehold is currently generating about 0.05 per unit of risk. If you would invest 147.00 in Autocorp Holding Public on January 22, 2025 and sell it today you would lose (79.00) from holding Autocorp Holding Public or give up 53.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autocorp Holding Public vs. LH Hotel Leasehold
Performance |
| Timeline |
| Autocorp Holding Public |
| LH Hotel Leasehold |
Autocorp Holding and LH Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autocorp Holding and LH Hotel
The main advantage of trading using opposite Autocorp Holding and LH Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autocorp Holding position performs unexpectedly, LH Hotel 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 LH Hotel will offset losses from the drop in LH Hotel's long position.| Autocorp Holding vs. Amanah Leasing Public | Autocorp Holding vs. Asia Fiber Public | Autocorp Holding vs. Ingress Industrial Public | Autocorp Holding vs. Ekarat Engineering Public |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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