Correlation Between LH Hotel and KTBST Mixed
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By analyzing existing cross correlation between LH Hotel Leasehold and KTBST Mixed Leasehold, you can compare the effects of market volatilities on LH Hotel and KTBST Mixed 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 KTBST Mixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of LH Hotel and KTBST Mixed.
Diversification Opportunities for LH Hotel and KTBST Mixed
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LHHOTEL and KTBST is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding LH Hotel Leasehold and KTBST Mixed Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KTBST Mixed Leasehold 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 KTBST Mixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KTBST Mixed Leasehold has no effect on the direction of LH Hotel i.e., LH Hotel and KTBST Mixed go up and down completely randomly.
Pair Corralation between LH Hotel and KTBST Mixed
Assuming the 90 days trading horizon LH Hotel Leasehold is expected to under-perform the KTBST Mixed. In addition to that, LH Hotel is 1.32 times more volatile than KTBST Mixed Leasehold. It trades about -0.07 of its total potential returns per unit of risk. KTBST Mixed Leasehold is currently generating about 0.02 per unit of volatility. If you would invest 647.00 in KTBST Mixed Leasehold on August 30, 2024 and sell it today you would earn a total of 3.00 from holding KTBST Mixed Leasehold or generate 0.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
LH Hotel Leasehold vs. KTBST Mixed Leasehold
Performance |
| Timeline |
| LH Hotel Leasehold |
| KTBST Mixed Leasehold |
LH Hotel and KTBST Mixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LH Hotel and KTBST Mixed
The main advantage of trading using opposite LH Hotel and KTBST Mixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LH Hotel position performs unexpectedly, KTBST Mixed 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 KTBST Mixed will offset losses from the drop in KTBST Mixed'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 |
| KTBST Mixed vs. Ticon Freehold and | KTBST Mixed vs. CPN Retail Growth | KTBST Mixed vs. Golden Ventures Leasehold | KTBST Mixed vs. Impact Growth REIT |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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