Correlation Between Golden Ventures and LH Hotel
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By analyzing existing cross correlation between Golden Ventures Leasehold and LH Hotel Leasehold, you can compare the effects of market volatilities on Golden Ventures 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 Golden Ventures with a short position of LH Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Ventures and LH Hotel.
Diversification Opportunities for Golden Ventures and LH Hotel
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Golden and LHHOTEL is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Golden Ventures 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 Golden Ventures 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 Golden Ventures 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 Golden Ventures i.e., Golden Ventures and LH Hotel go up and down completely randomly.
Pair Corralation between Golden Ventures and LH Hotel
Assuming the 90 days trading horizon Golden Ventures is expected to generate 16.79 times less return on investment than LH Hotel. In addition to that, Golden Ventures is 1.31 times more volatile than LH Hotel Leasehold. It trades about 0.01 of its total potential returns per unit of risk. LH Hotel Leasehold is currently generating about 0.18 per unit of volatility. If you would invest 1,248 in LH Hotel Leasehold on August 31, 2024 and sell it today you would earn a total of 62.00 from holding LH Hotel Leasehold or generate 4.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Ventures Leasehold vs. LH Hotel Leasehold
Performance |
| Timeline |
| Golden Ventures Leasehold |
| LH Hotel Leasehold |
Golden Ventures and LH Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Ventures and LH Hotel
The main advantage of trading using opposite Golden Ventures and LH Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Ventures 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.| Golden Ventures vs. Impact Growth REIT | Golden Ventures vs. CPN Retail Growth | Golden Ventures vs. WHA Premium Growth | Golden Ventures vs. LH Shopping Centers |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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