Correlation Between LH Hotel and BA Airport
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By analyzing existing cross correlation between LH Hotel Leasehold and BA Airport Leasehold, you can compare the effects of market volatilities on LH Hotel and BA Airport 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 LH Hotel with a short position of BA Airport. Check out your portfolio center. Please also check ongoing floating volatility patterns of LH Hotel and BA Airport.
Diversification Opportunities for LH Hotel and BA Airport
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LHHOTEL and BAREIT is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding LH Hotel Leasehold and BA Airport Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BA Airport Leasehold and LH Hotel 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 LH Hotel Leasehold are associated (or correlated) with BA Airport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BA Airport Leasehold has no effect on the direction of LH Hotel i.e., LH Hotel and BA Airport go up and down completely randomly.
Pair Corralation between LH Hotel and BA Airport
Assuming the 90 days trading horizon LH Hotel Leasehold is expected to under-perform the BA Airport. In addition to that, LH Hotel is 4.39 times more volatile than BA Airport Leasehold. It trades about -0.11 of its total potential returns per unit of risk. BA Airport Leasehold is currently generating about -0.17 per unit of volatility. If you would invest 971.00 in BA Airport Leasehold on September 1, 2024 and sell it today you would lose (31.00) from holding BA Airport Leasehold or give up 3.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LH Hotel Leasehold vs. BA Airport Leasehold
Performance |
| Timeline |
| LH Hotel Leasehold |
| BA Airport Leasehold |
LH Hotel and BA Airport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LH Hotel and BA Airport
The main advantage of trading using opposite LH Hotel and BA Airport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LH Hotel position performs unexpectedly, BA Airport 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 BA Airport will offset losses from the drop in BA Airport's long position.| LH Hotel vs. LH Shopping Centers | LH Hotel vs. Quality Houses Property | LH Hotel vs. Impact Growth REIT | LH Hotel vs. CPN Retail Growth |
| BA Airport vs. LH Shopping Centers | BA Airport vs. HEMARAJ INDUSTRIAL PROPERTY | BA Airport vs. Land and Houses |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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