Correlation Between AAPICO Hitech and LH Hotel
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By analyzing existing cross correlation between AAPICO Hitech Public and LH Hotel Leasehold, you can compare the effects of market volatilities on AAPICO Hitech 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 AAPICO Hitech with a short position of LH Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAPICO Hitech and LH Hotel.
Diversification Opportunities for AAPICO Hitech and LH Hotel
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AAPICO and LHHOTEL is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding AAPICO Hitech 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 AAPICO Hitech 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 AAPICO Hitech 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 AAPICO Hitech i.e., AAPICO Hitech and LH Hotel go up and down completely randomly.
Pair Corralation between AAPICO Hitech and LH Hotel
Assuming the 90 days horizon AAPICO Hitech Public is expected to under-perform the LH Hotel. In addition to that, AAPICO Hitech is 1.83 times more volatile than LH Hotel Leasehold. It trades about -0.07 of its total potential returns per unit of risk. LH Hotel Leasehold is currently generating about 0.12 per unit of volatility. If you would invest 913.00 in LH Hotel Leasehold on September 1, 2024 and sell it today you would earn a total of 407.00 from holding LH Hotel Leasehold or generate 44.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AAPICO Hitech Public vs. LH Hotel Leasehold
Performance |
| Timeline |
| AAPICO Hitech Public |
| LH Hotel Leasehold |
AAPICO Hitech and LH Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAPICO Hitech and LH Hotel
The main advantage of trading using opposite AAPICO Hitech and LH Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAPICO Hitech 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.| AAPICO Hitech vs. TRC Construction Public | AAPICO Hitech vs. Bangkok Expressway and | AAPICO Hitech vs. Lohakit Metal Public | AAPICO Hitech vs. Gunkul 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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