Correlation Between AltShares Trust and LHA Market
Can any of the company-specific risk be diversified away by investing in both AltShares Trust and LHA Market 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 AltShares Trust and LHA Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AltShares Trust and LHA Market State, you can compare the effects of market volatilities on AltShares Trust and LHA Market 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 AltShares Trust with a short position of LHA Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of AltShares Trust and LHA Market.
Diversification Opportunities for AltShares Trust and LHA Market
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AltShares and LHA is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding AltShares Trust and LHA Market State in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LHA Market State and AltShares Trust 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 AltShares Trust are associated (or correlated) with LHA Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LHA Market State has no effect on the direction of AltShares Trust i.e., AltShares Trust and LHA Market go up and down completely randomly.
Pair Corralation between AltShares Trust and LHA Market
Considering the 90-day investment horizon AltShares Trust is expected to under-perform the LHA Market. But the etf apears to be less risky and, when comparing its historical volatility, AltShares Trust is 2.16 times less risky than LHA Market. The etf trades about -0.02 of its potential returns per unit of risk. The LHA Market State is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,203 in LHA Market State on August 30, 2024 and sell it today you would earn a total of 14.00 from holding LHA Market State or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
AltShares Trust vs. LHA Market State
Performance |
| Timeline |
| AltShares Trust |
| LHA Market State |
AltShares Trust and LHA Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AltShares Trust and LHA Market
The main advantage of trading using opposite AltShares Trust and LHA Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AltShares Trust position performs unexpectedly, LHA Market 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 LHA Market will offset losses from the drop in LHA Market's long position.| AltShares Trust vs. Albany International | AltShares Trust vs. Acadia Realty Trust | AltShares Trust vs. AptarGroup | AltShares Trust vs. Applied Industrial Technologies |
| LHA Market vs. Alpha Architect Quantitative | LHA Market vs. Alpha Architect International | LHA Market vs. Alpha Architect International | LHA Market vs. Alpha Architect Quantitative |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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