Correlation Between LH Hotel and Micro Leasing
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By analyzing existing cross correlation between LH Hotel Leasehold and Micro Leasing Public, you can compare the effects of market volatilities on LH Hotel and Micro Leasing 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 Micro Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of LH Hotel and Micro Leasing.
Diversification Opportunities for LH Hotel and Micro Leasing
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LHHOTEL and Micro is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding LH Hotel Leasehold and Micro Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micro Leasing 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 Micro Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micro Leasing Public has no effect on the direction of LH Hotel i.e., LH Hotel and Micro Leasing go up and down completely randomly.
Pair Corralation between LH Hotel and Micro Leasing
Assuming the 90 days trading horizon LH Hotel Leasehold is expected to generate 0.4 times more return on investment than Micro Leasing. However, LH Hotel Leasehold is 2.51 times less risky than Micro Leasing. It trades about 0.12 of its potential returns per unit of risk. Micro Leasing Public is currently generating about -0.4 per unit of risk. If you would invest 1,290 in LH Hotel Leasehold on August 27, 2024 and sell it today you would earn a total of 40.00 from holding LH Hotel Leasehold or generate 3.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LH Hotel Leasehold vs. Micro Leasing Public
Performance |
| Timeline |
| LH Hotel Leasehold |
| Micro Leasing Public |
LH Hotel and Micro Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LH Hotel and Micro Leasing
The main advantage of trading using opposite LH Hotel and Micro Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LH Hotel position performs unexpectedly, Micro Leasing 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 Micro Leasing will offset losses from the drop in Micro Leasing'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 |
| Micro Leasing vs. Amanah Leasing Public | Micro Leasing vs. Infraset Public | Micro Leasing vs. JMT Network Services |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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