Correlation Between Charter Hall and LGI
Can any of the company-specific risk be diversified away by investing in both Charter Hall and LGI 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 Charter Hall and LGI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Charter Hall Education and LGI, you can compare the effects of market volatilities on Charter Hall and LGI 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 Charter Hall with a short position of LGI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charter Hall and LGI.
Diversification Opportunities for Charter Hall and LGI
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Charter and LGI is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Charter Hall Education and LGI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LGI and Charter Hall 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 Charter Hall Education are associated (or correlated) with LGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LGI has no effect on the direction of Charter Hall i.e., Charter Hall and LGI go up and down completely randomly.
Pair Corralation between Charter Hall and LGI
Assuming the 90 days trading horizon Charter Hall Education is expected to generate 0.34 times more return on investment than LGI. However, Charter Hall Education is 2.93 times less risky than LGI. It trades about 0.09 of its potential returns per unit of risk. LGI is currently generating about 0.0 per unit of risk. If you would invest 257.00 in Charter Hall Education on November 1, 2024 and sell it today you would earn a total of 4.00 from holding Charter Hall Education or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Charter Hall Education vs. LGI
Performance |
| Timeline |
| Charter Hall Education |
| LGI |
Charter Hall and LGI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Charter Hall and LGI
The main advantage of trading using opposite Charter Hall and LGI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charter Hall position performs unexpectedly, LGI 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 LGI will offset losses from the drop in LGI's long position.| Charter Hall vs. Argo Investments | Charter Hall vs. Hotel Property Investments | Charter Hall vs. Pinnacle Investment Management | Charter Hall vs. Stelar Metals |
| LGI vs. Carnegie Clean Energy | LGI vs. Kkr Credit Income | LGI vs. Wt Financial Group | LGI vs. Charter Hall Education |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |