Correlation Between LH Hotel and ONE Enterprise
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By analyzing existing cross correlation between LH Hotel Leasehold and The ONE Enterprise, you can compare the effects of market volatilities on LH Hotel and ONE Enterprise 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 ONE Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of LH Hotel and ONE Enterprise.
Diversification Opportunities for LH Hotel and ONE Enterprise
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between LHHOTEL and ONE is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding LH Hotel Leasehold and The ONE Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONE Enterprise 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 ONE Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONE Enterprise has no effect on the direction of LH Hotel i.e., LH Hotel and ONE Enterprise go up and down completely randomly.
Pair Corralation between LH Hotel and ONE Enterprise
Assuming the 90 days trading horizon LH Hotel Leasehold is expected to generate 0.96 times more return on investment than ONE Enterprise. However, LH Hotel Leasehold is 1.04 times less risky than ONE Enterprise. It trades about 0.14 of its potential returns per unit of risk. The ONE Enterprise is currently generating about -0.15 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. The ONE Enterprise
Performance |
| Timeline |
| LH Hotel Leasehold |
| ONE Enterprise |
LH Hotel and ONE Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LH Hotel and ONE Enterprise
The main advantage of trading using opposite LH Hotel and ONE Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LH Hotel position performs unexpectedly, ONE Enterprise 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 ONE Enterprise will offset losses from the drop in ONE Enterprise'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 |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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