Correlation Between Bhiraj Office and LH Hotel
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By analyzing existing cross correlation between Bhiraj Office Leasehold and LH Hotel Leasehold, you can compare the effects of market volatilities on Bhiraj Office 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 Bhiraj Office with a short position of LH Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bhiraj Office and LH Hotel.
Diversification Opportunities for Bhiraj Office and LH Hotel
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bhiraj and LHHOTEL is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bhiraj Office Leasehold 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 Bhiraj Office 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 Bhiraj Office Leasehold 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 Bhiraj Office i.e., Bhiraj Office and LH Hotel go up and down completely randomly.
Pair Corralation between Bhiraj Office and LH Hotel
Assuming the 90 days trading horizon Bhiraj Office Leasehold is expected to generate 0.32 times more return on investment than LH Hotel. However, Bhiraj Office Leasehold is 3.15 times less risky than LH Hotel. It trades about 0.01 of its potential returns per unit of risk. LH Hotel Leasehold is currently generating about -0.11 per unit of risk. If you would invest 510.00 in Bhiraj Office Leasehold on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Bhiraj Office Leasehold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bhiraj Office Leasehold vs. LH Hotel Leasehold
Performance |
| Timeline |
| Bhiraj Office Leasehold |
| LH Hotel Leasehold |
Bhiraj Office and LH Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bhiraj Office and LH Hotel
The main advantage of trading using opposite Bhiraj Office and LH Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bhiraj Office 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.| Bhiraj Office vs. LH Shopping Centers | Bhiraj Office vs. HEMARAJ INDUSTRIAL PROPERTY | Bhiraj Office vs. Land and Houses |
| LH Hotel vs. LH Shopping Centers | LH Hotel vs. Quality Houses Property | LH Hotel vs. Impact Growth REIT | LH Hotel vs. CPN Retail Growth |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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