Correlation Between CENTRAL RETAIL and LH Hotel
Specify exactly 2 symbols:
By analyzing existing cross correlation between CENTRAL RETAIL P and LH Hotel Leasehold, you can compare the effects of market volatilities on CENTRAL RETAIL 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 CENTRAL RETAIL with a short position of LH Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTRAL RETAIL and LH Hotel.
Diversification Opportunities for CENTRAL RETAIL and LH Hotel
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CENTRAL and LHHOTEL is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding CENTRAL RETAIL P 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 CENTRAL RETAIL 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 CENTRAL RETAIL P 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 CENTRAL RETAIL i.e., CENTRAL RETAIL and LH Hotel go up and down completely randomly.
Pair Corralation between CENTRAL RETAIL and LH Hotel
Assuming the 90 days trading horizon CENTRAL RETAIL P is expected to under-perform the LH Hotel. But the stock apears to be less risky and, when comparing its historical volatility, CENTRAL RETAIL P is 1.88 times less risky than LH Hotel. The stock trades about -0.06 of its potential returns per unit of risk. The LH Hotel Leasehold is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 934.00 in LH Hotel Leasehold on September 3, 2024 and sell it today you would earn a total of 177.00 from holding LH Hotel Leasehold or generate 18.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CENTRAL RETAIL P vs. LH Hotel Leasehold
Performance |
| Timeline |
| CENTRAL RETAIL P |
| LH Hotel Leasehold |
CENTRAL RETAIL and LH Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTRAL RETAIL and LH Hotel
The main advantage of trading using opposite CENTRAL RETAIL and LH Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTRAL RETAIL 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.| CENTRAL RETAIL vs. Central Retail | CENTRAL RETAIL vs. The Erawan Group | CENTRAL RETAIL vs. Autocorp Holding Public | CENTRAL RETAIL vs. XSpring Capital Public |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |