Correlation Between KT Medical and LH Hotel
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By analyzing existing cross correlation between KT Medical Service and LH Hotel Leasehold, you can compare the effects of market volatilities on KT Medical 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 KT Medical with a short position of LH Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Medical and LH Hotel.
Diversification Opportunities for KT Medical and LH Hotel
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KTMS and LHHOTEL is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding KT Medical Service 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 KT Medical 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 KT Medical Service 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 KT Medical i.e., KT Medical and LH Hotel go up and down completely randomly.
Pair Corralation between KT Medical and LH Hotel
Assuming the 90 days trading horizon KT Medical Service is expected to under-perform the LH Hotel. In addition to that, KT Medical is 3.96 times more volatile than LH Hotel Leasehold. It trades about -0.14 of its total potential returns per unit of risk. LH Hotel Leasehold is currently generating about 0.05 per unit of volatility. If you would invest 1,320 in LH Hotel Leasehold on November 27, 2024 and sell it today you would earn a total of 10.00 from holding LH Hotel Leasehold or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KT Medical Service vs. LH Hotel Leasehold
Performance |
| Timeline |
| KT Medical Service |
| LH Hotel Leasehold |
KT Medical and LH Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT Medical and LH Hotel
The main advantage of trading using opposite KT Medical and LH Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT Medical 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.| KT Medical vs. DTC Enterprise PCL | KT Medical vs. Yong Concrete PCL | KT Medical vs. Make To Win | KT Medical vs. Aurora Design PCL |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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