Correlation Between LH Hotel and Quality Houses
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By analyzing existing cross correlation between LH Hotel Leasehold and Quality Houses Property, you can compare the effects of market volatilities on LH Hotel and Quality Houses 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 Quality Houses. Check out your portfolio center. Please also check ongoing floating volatility patterns of LH Hotel and Quality Houses.
Diversification Opportunities for LH Hotel and Quality Houses
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LHHOTEL and Quality is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding LH Hotel Leasehold and Quality Houses Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quality Houses Property 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 Quality Houses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quality Houses Property has no effect on the direction of LH Hotel i.e., LH Hotel and Quality Houses go up and down completely randomly.
Pair Corralation between LH Hotel and Quality Houses
Assuming the 90 days trading horizon LH Hotel Leasehold is expected to generate 1.57 times more return on investment than Quality Houses. However, LH Hotel is 1.57 times more volatile than Quality Houses Property. It trades about 0.18 of its potential returns per unit of risk. Quality Houses Property is currently generating about -0.26 per unit of risk. If you would invest 1,248 in LH Hotel Leasehold on August 31, 2024 and sell it today you would earn a total of 62.00 from holding LH Hotel Leasehold or generate 4.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LH Hotel Leasehold vs. Quality Houses Property
Performance |
| Timeline |
| LH Hotel Leasehold |
| Quality Houses Property |
LH Hotel and Quality Houses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LH Hotel and Quality Houses
The main advantage of trading using opposite LH Hotel and Quality Houses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LH Hotel position performs unexpectedly, Quality Houses 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 Quality Houses will offset losses from the drop in Quality Houses' 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 |
| Quality Houses vs. Quality Houses Hotel | Quality Houses vs. LH Shopping Centers | Quality Houses vs. LH Hotel Leasehold | Quality Houses vs. Future Park Leasehold |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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