Correlation Between LH Hotel and Dcon Products
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By analyzing existing cross correlation between LH Hotel Leasehold and Dcon Products Public, you can compare the effects of market volatilities on LH Hotel and Dcon Products 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 Dcon Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of LH Hotel and Dcon Products.
Diversification Opportunities for LH Hotel and Dcon Products
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between LHHOTEL and Dcon is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding LH Hotel Leasehold and Dcon Products Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dcon Products 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 Dcon Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dcon Products Public has no effect on the direction of LH Hotel i.e., LH Hotel and Dcon Products go up and down completely randomly.
Pair Corralation between LH Hotel and Dcon Products
Assuming the 90 days trading horizon LH Hotel Leasehold is expected to generate 0.43 times more return on investment than Dcon Products. However, LH Hotel Leasehold is 2.34 times less risky than Dcon Products. It trades about 0.42 of its potential returns per unit of risk. Dcon Products Public is currently generating about 0.08 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LH Hotel Leasehold vs. Dcon Products Public
Performance |
| Timeline |
| LH Hotel Leasehold |
| Dcon Products Public |
LH Hotel and Dcon Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LH Hotel and Dcon Products
The main advantage of trading using opposite LH Hotel and Dcon Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LH Hotel position performs unexpectedly, Dcon Products 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 Dcon Products will offset losses from the drop in Dcon Products' 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 |
| Dcon Products vs. Thantawan Industry Public | Dcon Products vs. The Erawan Group | Dcon Products vs. Jay Mart Public | Dcon Products 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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