Correlation Between LH Hotel and Central Plaza
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By analyzing existing cross correlation between LH Hotel Leasehold and Central Plaza Hotel, you can compare the effects of market volatilities on LH Hotel and Central Plaza 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 Central Plaza. Check out your portfolio center. Please also check ongoing floating volatility patterns of LH Hotel and Central Plaza.
Diversification Opportunities for LH Hotel and Central Plaza
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LHHOTEL and Central is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding LH Hotel Leasehold and Central Plaza Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Plaza Hotel 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 Central Plaza. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Plaza Hotel has no effect on the direction of LH Hotel i.e., LH Hotel and Central Plaza go up and down completely randomly.
Pair Corralation between LH Hotel and Central Plaza
Assuming the 90 days trading horizon LH Hotel Leasehold is expected to under-perform the Central Plaza. In addition to that, LH Hotel is 1.63 times more volatile than Central Plaza Hotel. It trades about -0.13 of its total potential returns per unit of risk. Central Plaza Hotel is currently generating about 0.15 per unit of volatility. If you would invest 3,525 in Central Plaza Hotel on September 3, 2024 and sell it today you would earn a total of 250.00 from holding Central Plaza Hotel or generate 7.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LH Hotel Leasehold vs. Central Plaza Hotel
Performance |
| Timeline |
| LH Hotel Leasehold |
| Central Plaza Hotel |
LH Hotel and Central Plaza Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LH Hotel and Central Plaza
The main advantage of trading using opposite LH Hotel and Central Plaza positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LH Hotel position performs unexpectedly, Central Plaza 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 Central Plaza will offset losses from the drop in Central Plaza'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 |
| Central Plaza vs. Central Pattana Public | Central Plaza vs. CP ALL Public | Central Plaza vs. Bangkok Dusit Medical | Central Plaza vs. Airports of Thailand |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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