Correlation Between Golden Ventures and LH Shopping
Can any of the company-specific risk be diversified away by investing in both Golden Ventures and LH Shopping 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 Golden Ventures and LH Shopping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Ventures Leasehold and LH Shopping Centers, you can compare the effects of market volatilities on Golden Ventures and LH Shopping 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 Shopping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Ventures and LH Shopping.
Diversification Opportunities for Golden Ventures and LH Shopping
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Golden and LHSC is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Golden Ventures Leasehold and LH Shopping Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LH Shopping Centers 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 Shopping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LH Shopping Centers has no effect on the direction of Golden Ventures i.e., Golden Ventures and LH Shopping go up and down completely randomly.
Pair Corralation between Golden Ventures and LH Shopping
Assuming the 90 days trading horizon Golden Ventures is expected to generate 17.58 times less return on investment than LH Shopping. In addition to that, Golden Ventures is 1.95 times more volatile than LH Shopping Centers. It trades about 0.01 of its total potential returns per unit of risk. LH Shopping Centers is currently generating about 0.28 per unit of volatility. If you would invest 1,073 in LH Shopping Centers on August 31, 2024 and sell it today you would earn a total of 57.00 from holding LH Shopping Centers or generate 5.31% 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 Shopping Centers
Performance |
| Timeline |
| Golden Ventures Leasehold |
| LH Shopping Centers |
Golden Ventures and LH Shopping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Ventures and LH Shopping
The main advantage of trading using opposite Golden Ventures and LH Shopping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Ventures position performs unexpectedly, LH Shopping 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 Shopping will offset losses from the drop in LH Shopping'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 Shopping vs. LH Hotel Leasehold | LH Shopping vs. Impact Growth REIT | LH Shopping vs. Quality Houses Property | LH Shopping 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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