Correlation Between LH Hotel and Interlink Telecom
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By analyzing existing cross correlation between LH Hotel Leasehold and Interlink Telecom Public, you can compare the effects of market volatilities on LH Hotel and Interlink Telecom 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 Interlink Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of LH Hotel and Interlink Telecom.
Diversification Opportunities for LH Hotel and Interlink Telecom
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between LHHOTEL and Interlink is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding LH Hotel Leasehold and Interlink Telecom Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interlink Telecom 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 Interlink Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interlink Telecom Public has no effect on the direction of LH Hotel i.e., LH Hotel and Interlink Telecom go up and down completely randomly.
Pair Corralation between LH Hotel and Interlink Telecom
Assuming the 90 days trading horizon LH Hotel Leasehold is expected to under-perform the Interlink Telecom. In addition to that, LH Hotel is 1.43 times more volatile than Interlink Telecom Public. It trades about -0.13 of its total potential returns per unit of risk. Interlink Telecom Public is currently generating about -0.14 per unit of volatility. If you would invest 226.00 in Interlink Telecom Public on September 3, 2024 and sell it today you would lose (18.00) from holding Interlink Telecom Public or give up 7.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LH Hotel Leasehold vs. Interlink Telecom Public
Performance |
| Timeline |
| LH Hotel Leasehold |
| Interlink Telecom Public |
LH Hotel and Interlink Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LH Hotel and Interlink Telecom
The main advantage of trading using opposite LH Hotel and Interlink Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LH Hotel position performs unexpectedly, Interlink Telecom 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 Interlink Telecom will offset losses from the drop in Interlink Telecom'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 |
| Interlink Telecom vs. Interlink Communication Public | Interlink Telecom vs. Jay Mart Public | Interlink Telecom vs. Internet Thailand Public | Interlink Telecom vs. Jasmine International Public |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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