Correlation Between LH Hotel and Warrix Sport
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By analyzing existing cross correlation between LH Hotel Leasehold and Warrix Sport PCL, you can compare the effects of market volatilities on LH Hotel and Warrix Sport 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 Warrix Sport. Check out your portfolio center. Please also check ongoing floating volatility patterns of LH Hotel and Warrix Sport.
Diversification Opportunities for LH Hotel and Warrix Sport
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between LHHOTEL and Warrix is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding LH Hotel Leasehold and Warrix Sport PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warrix Sport PCL 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 Warrix Sport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warrix Sport PCL has no effect on the direction of LH Hotel i.e., LH Hotel and Warrix Sport go up and down completely randomly.
Pair Corralation between LH Hotel and Warrix Sport
Assuming the 90 days trading horizon LH Hotel Leasehold is expected to under-perform the Warrix Sport. But the stock apears to be less risky and, when comparing its historical volatility, LH Hotel Leasehold is 1.82 times less risky than Warrix Sport. The stock trades about -0.07 of its potential returns per unit of risk. The Warrix Sport PCL is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 356.00 in Warrix Sport PCL on August 30, 2024 and sell it today you would earn a total of 20.00 from holding Warrix Sport PCL or generate 5.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LH Hotel Leasehold vs. Warrix Sport PCL
Performance |
| Timeline |
| LH Hotel Leasehold |
| Warrix Sport PCL |
LH Hotel and Warrix Sport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LH Hotel and Warrix Sport
The main advantage of trading using opposite LH Hotel and Warrix Sport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LH Hotel position performs unexpectedly, Warrix Sport 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 Warrix Sport will offset losses from the drop in Warrix Sport'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 |
| Warrix Sport vs. Yong Concrete PCL | Warrix Sport vs. Moshi Moshi Retail | Warrix Sport vs. SCG PACKAGING PCL NVDR | Warrix Sport vs. CK Power Public |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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