Correlation Between LH Hotel and THONBURI HEALTHCARE
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By analyzing existing cross correlation between LH Hotel Leasehold and THONBURI HEALTHCARE GRO NVDR, you can compare the effects of market volatilities on LH Hotel and THONBURI HEALTHCARE 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 THONBURI HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of LH Hotel and THONBURI HEALTHCARE.
Diversification Opportunities for LH Hotel and THONBURI HEALTHCARE
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LHHOTEL and THONBURI is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding LH Hotel Leasehold and THONBURI HEALTHCARE GRO NVDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THONBURI HEALTHCARE GRO 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 THONBURI HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THONBURI HEALTHCARE GRO has no effect on the direction of LH Hotel i.e., LH Hotel and THONBURI HEALTHCARE go up and down completely randomly.
Pair Corralation between LH Hotel and THONBURI HEALTHCARE
Assuming the 90 days trading horizon LH Hotel Leasehold is expected to generate 0.05 times more return on investment than THONBURI HEALTHCARE. However, LH Hotel Leasehold is 18.92 times less risky than THONBURI HEALTHCARE. It trades about 0.42 of its potential returns per unit of risk. THONBURI HEALTHCARE GRO NVDR is currently generating about -0.15 per unit of risk. If you would invest 1,238 in LH Hotel Leasehold on September 14, 2024 and sell it today you would earn a total of 102.00 from holding LH Hotel Leasehold or generate 8.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LH Hotel Leasehold vs. THONBURI HEALTHCARE GRO NVDR
Performance |
| Timeline |
| LH Hotel Leasehold |
| THONBURI HEALTHCARE GRO |
LH Hotel and THONBURI HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LH Hotel and THONBURI HEALTHCARE
The main advantage of trading using opposite LH Hotel and THONBURI HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LH Hotel position performs unexpectedly, THONBURI HEALTHCARE 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 THONBURI HEALTHCARE will offset losses from the drop in THONBURI HEALTHCARE'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 |
| THONBURI HEALTHCARE vs. LH Hotel Leasehold | THONBURI HEALTHCARE vs. WHA Utilities and | THONBURI HEALTHCARE vs. Information and Communication | THONBURI HEALTHCARE vs. Heng Leasing Capital |
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 Stocks Directory module to find actively traded stocks across global markets.
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