Correlation Between Interlink Telecom and LH Hotel
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By analyzing existing cross correlation between Interlink Telecom Public and LH Hotel Leasehold, you can compare the effects of market volatilities on Interlink Telecom 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 Interlink Telecom with a short position of LH Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interlink Telecom and LH Hotel.
Diversification Opportunities for Interlink Telecom and LH Hotel
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Interlink and LHHOTEL is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Interlink Telecom 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 Interlink Telecom 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 Interlink Telecom 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 Interlink Telecom i.e., Interlink Telecom and LH Hotel go up and down completely randomly.
Pair Corralation between Interlink Telecom and LH Hotel
Assuming the 90 days trading horizon Interlink Telecom Public is expected to under-perform the LH Hotel. In addition to that, Interlink Telecom is 2.01 times more volatile than LH Hotel Leasehold. It trades about -0.19 of its total potential returns per unit of risk. LH Hotel Leasehold is currently generating about 0.23 per unit of volatility. If you would invest 1,238 in LH Hotel Leasehold on September 1, 2024 and sell it today you would earn a total of 82.00 from holding LH Hotel Leasehold or generate 6.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interlink Telecom Public vs. LH Hotel Leasehold
Performance |
| Timeline |
| Interlink Telecom Public |
| LH Hotel Leasehold |
Interlink Telecom and LH Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interlink Telecom and LH Hotel
The main advantage of trading using opposite Interlink Telecom and LH Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interlink Telecom 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.| Interlink Telecom vs. Hana Microelectronics Public | Interlink Telecom vs. Ekachai Medical Care | Interlink Telecom vs. Megachem Public | Interlink Telecom vs. Diamond Building Products |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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