Correlation Between LH Hotel and Dynasty Ceramic
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By analyzing existing cross correlation between LH Hotel Leasehold and Dynasty Ceramic Public, you can compare the effects of market volatilities on LH Hotel and Dynasty Ceramic 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 Dynasty Ceramic. Check out your portfolio center. Please also check ongoing floating volatility patterns of LH Hotel and Dynasty Ceramic.
Diversification Opportunities for LH Hotel and Dynasty Ceramic
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LHHOTEL and Dynasty is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding LH Hotel Leasehold and Dynasty Ceramic Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynasty Ceramic Public 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 Dynasty Ceramic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynasty Ceramic Public has no effect on the direction of LH Hotel i.e., LH Hotel and Dynasty Ceramic go up and down completely randomly.
Pair Corralation between LH Hotel and Dynasty Ceramic
Assuming the 90 days trading horizon LH Hotel Leasehold is expected to generate 1.1 times more return on investment than Dynasty Ceramic. However, LH Hotel is 1.1 times more volatile than Dynasty Ceramic Public. It trades about 0.42 of its potential returns per unit of risk. Dynasty Ceramic Public is currently generating about -0.27 per unit of risk. If you would invest 1,238 in LH Hotel Leasehold on September 14, 2024 and sell it today you would earn a total of 102.00 from holding LH Hotel Leasehold or generate 8.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LH Hotel Leasehold vs. Dynasty Ceramic Public
Performance |
| Timeline |
| LH Hotel Leasehold |
| Dynasty Ceramic Public |
LH Hotel and Dynasty Ceramic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LH Hotel and Dynasty Ceramic
The main advantage of trading using opposite LH Hotel and Dynasty Ceramic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LH Hotel position performs unexpectedly, Dynasty Ceramic 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 Dynasty Ceramic will offset losses from the drop in Dynasty Ceramic'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 |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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