Correlation Between LH Hotel and KT Medical
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By analyzing existing cross correlation between LH Hotel Leasehold and KT Medical Service, you can compare the effects of market volatilities on LH Hotel and KT Medical 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 KT Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of LH Hotel and KT Medical.
Diversification Opportunities for LH Hotel and KT Medical
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between LHHOTEL and KTMS is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding LH Hotel Leasehold and KT Medical Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KT Medical Service 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 KT Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KT Medical Service has no effect on the direction of LH Hotel i.e., LH Hotel and KT Medical go up and down completely randomly.
Pair Corralation between LH Hotel and KT Medical
Assuming the 90 days trading horizon LH Hotel Leasehold is expected to generate 0.47 times more return on investment than KT Medical. However, LH Hotel Leasehold is 2.11 times less risky than KT Medical. It trades about 0.12 of its potential returns per unit of risk. KT Medical Service is currently generating about -0.02 per unit of risk. If you would invest 913.00 in LH Hotel Leasehold on September 1, 2024 and sell it today you would earn a total of 407.00 from holding LH Hotel Leasehold or generate 44.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LH Hotel Leasehold vs. KT Medical Service
Performance |
| Timeline |
| LH Hotel Leasehold |
| KT Medical Service |
LH Hotel and KT Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LH Hotel and KT Medical
The main advantage of trading using opposite LH Hotel and KT Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LH Hotel position performs unexpectedly, KT Medical 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 KT Medical will offset losses from the drop in KT Medical'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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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