Correlation Between Dcon Products and LH Hotel
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By analyzing existing cross correlation between Dcon Products Public and LH Hotel Leasehold, you can compare the effects of market volatilities on Dcon Products 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 Dcon Products with a short position of LH Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dcon Products and LH Hotel.
Diversification Opportunities for Dcon Products and LH Hotel
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dcon and LHHOTEL is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Dcon Products 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 Dcon Products 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 Dcon Products 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 Dcon Products i.e., Dcon Products and LH Hotel go up and down completely randomly.
Pair Corralation between Dcon Products and LH Hotel
Assuming the 90 days trading horizon Dcon Products is expected to generate 2.14 times less return on investment than LH Hotel. In addition to that, Dcon Products is 2.34 times more volatile than LH Hotel Leasehold. It trades about 0.08 of its total potential returns per unit of risk. LH Hotel Leasehold is currently generating about 0.42 per unit of volatility. If you would invest 1,238 in LH Hotel Leasehold on September 14, 2024 and sell it today you would earn a total of 102.00 from holding LH Hotel Leasehold or generate 8.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dcon Products Public vs. LH Hotel Leasehold
Performance |
| Timeline |
| Dcon Products Public |
| LH Hotel Leasehold |
Dcon Products and LH Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dcon Products and LH Hotel
The main advantage of trading using opposite Dcon Products and LH Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dcon Products 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.| Dcon Products vs. Thantawan Industry Public | Dcon Products vs. The Erawan Group | Dcon Products vs. Jay Mart Public | Dcon Products vs. Airports of Thailand |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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