Correlation Between LH Hotel and Sri Panwa
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By analyzing existing cross correlation between LH Hotel Leasehold and Sri panwa Hospitality, you can compare the effects of market volatilities on LH Hotel and Sri Panwa 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 Sri Panwa. Check out your portfolio center. Please also check ongoing floating volatility patterns of LH Hotel and Sri Panwa.
Diversification Opportunities for LH Hotel and Sri Panwa
Very weak diversification
The 3 months correlation between LHHOTEL and Sri is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding LH Hotel Leasehold and Sri panwa Hospitality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sri panwa Hospitality 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 Sri Panwa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sri panwa Hospitality has no effect on the direction of LH Hotel i.e., LH Hotel and Sri Panwa go up and down completely randomly.
Pair Corralation between LH Hotel and Sri Panwa
Assuming the 90 days trading horizon LH Hotel Leasehold is expected to under-perform the Sri Panwa. In addition to that, LH Hotel is 2.16 times more volatile than Sri panwa Hospitality. It trades about -0.12 of its total potential returns per unit of risk. Sri panwa Hospitality is currently generating about 0.04 per unit of volatility. If you would invest 579.00 in Sri panwa Hospitality on September 2, 2024 and sell it today you would earn a total of 6.00 from holding Sri panwa Hospitality or generate 1.04% 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. Sri panwa Hospitality
Performance |
| Timeline |
| LH Hotel Leasehold |
| Sri panwa Hospitality |
LH Hotel and Sri Panwa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LH Hotel and Sri Panwa
The main advantage of trading using opposite LH Hotel and Sri Panwa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LH Hotel position performs unexpectedly, Sri Panwa 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 Sri Panwa will offset losses from the drop in Sri Panwa'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 |
| Sri Panwa vs. LH Hotel Leasehold | Sri Panwa vs. LH Shopping Centers | Sri Panwa vs. Grande Hospitality Real | Sri Panwa vs. The Erawan Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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