Correlation Between LH Hotel and Namwiwat Medical
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By analyzing existing cross correlation between LH Hotel Leasehold and Namwiwat Medical, you can compare the effects of market volatilities on LH Hotel and Namwiwat 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 Namwiwat Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of LH Hotel and Namwiwat Medical.
Diversification Opportunities for LH Hotel and Namwiwat Medical
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between LHHOTEL and Namwiwat is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding LH Hotel Leasehold and Namwiwat Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namwiwat Medical 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 Namwiwat Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namwiwat Medical has no effect on the direction of LH Hotel i.e., LH Hotel and Namwiwat Medical go up and down completely randomly.
Pair Corralation between LH Hotel and Namwiwat Medical
Assuming the 90 days trading horizon LH Hotel Leasehold is expected to generate 1.14 times more return on investment than Namwiwat Medical. However, LH Hotel is 1.14 times more volatile than Namwiwat Medical. It trades about 0.14 of its potential returns per unit of risk. Namwiwat Medical is currently generating about -0.08 per unit of risk. If you would invest 1,290 in LH Hotel Leasehold on August 29, 2024 and sell it today you would earn a total of 50.00 from holding LH Hotel Leasehold or generate 3.88% 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. Namwiwat Medical
Performance |
| Timeline |
| LH Hotel Leasehold |
| Namwiwat Medical |
LH Hotel and Namwiwat Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LH Hotel and Namwiwat Medical
The main advantage of trading using opposite LH Hotel and Namwiwat Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LH Hotel position performs unexpectedly, Namwiwat 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 Namwiwat Medical will offset losses from the drop in Namwiwat 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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