Correlation Between LH Hotel and CPN Retail
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By analyzing existing cross correlation between LH Hotel Leasehold and CPN Retail Growth, you can compare the effects of market volatilities on LH Hotel and CPN Retail 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 CPN Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of LH Hotel and CPN Retail.
Diversification Opportunities for LH Hotel and CPN Retail
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LHHOTEL and CPN is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding LH Hotel Leasehold and CPN Retail Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPN Retail Growth 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 CPN Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPN Retail Growth has no effect on the direction of LH Hotel i.e., LH Hotel and CPN Retail go up and down completely randomly.
Pair Corralation between LH Hotel and CPN Retail
Assuming the 90 days trading horizon LH Hotel Leasehold is expected to generate 0.8 times more return on investment than CPN Retail. However, LH Hotel Leasehold is 1.25 times less risky than CPN Retail. It trades about 0.18 of its potential returns per unit of risk. CPN Retail Growth is currently generating about 0.08 per unit of risk. If you would invest 1,248 in LH Hotel Leasehold on August 31, 2024 and sell it today you would earn a total of 62.00 from holding LH Hotel Leasehold or generate 4.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
LH Hotel Leasehold vs. CPN Retail Growth
Performance |
| Timeline |
| LH Hotel Leasehold |
| CPN Retail Growth |
LH Hotel and CPN Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LH Hotel and CPN Retail
The main advantage of trading using opposite LH Hotel and CPN Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LH Hotel position performs unexpectedly, CPN Retail 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 CPN Retail will offset losses from the drop in CPN Retail'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 |
| CPN Retail vs. Central Pattana Public | CPN Retail vs. Digital Telecommunications Infrastructure | CPN Retail vs. Impact Growth REIT | CPN Retail vs. WHA Premium 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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