Correlation Between Lighthouse Hotel and EX PACK
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By analyzing existing cross correlation between Lighthouse Hotel PLC and EX PACK RUGATED CARTONS, you can compare the effects of market volatilities on Lighthouse Hotel and EX PACK 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 Lighthouse Hotel with a short position of EX PACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lighthouse Hotel and EX PACK.
Diversification Opportunities for Lighthouse Hotel and EX PACK
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lighthouse and PACKN0000 is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Lighthouse Hotel PLC and EX PACK RUGATED CARTONS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EX PACK RUGATED and Lighthouse 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 Lighthouse Hotel PLC are associated (or correlated) with EX PACK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EX PACK RUGATED has no effect on the direction of Lighthouse Hotel i.e., Lighthouse Hotel and EX PACK go up and down completely randomly.
Pair Corralation between Lighthouse Hotel and EX PACK
Assuming the 90 days trading horizon Lighthouse Hotel PLC is expected to generate 2.29 times more return on investment than EX PACK. However, Lighthouse Hotel is 2.29 times more volatile than EX PACK RUGATED CARTONS. It trades about 0.42 of its potential returns per unit of risk. EX PACK RUGATED CARTONS is currently generating about 0.18 per unit of risk. If you would invest 4,760 in Lighthouse Hotel PLC on September 12, 2024 and sell it today you would earn a total of 1,270 from holding Lighthouse Hotel PLC or generate 26.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Lighthouse Hotel PLC vs. EX PACK RUGATED CARTONS
Performance |
| Timeline |
| Lighthouse Hotel PLC |
| EX PACK RUGATED |
Lighthouse Hotel and EX PACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lighthouse Hotel and EX PACK
The main advantage of trading using opposite Lighthouse Hotel and EX PACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lighthouse Hotel position performs unexpectedly, EX PACK 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 EX PACK will offset losses from the drop in EX PACK's long position.| Lighthouse Hotel vs. Jat Holdings PLC | Lighthouse Hotel vs. Lanka Credit and | Lighthouse Hotel vs. VIDULLANKA PLC | Lighthouse Hotel vs. Carson Cumberbatch PLC |
| EX PACK vs. Jat Holdings PLC | EX PACK vs. Lanka Credit and | EX PACK vs. VIDULLANKA PLC | EX PACK vs. Carson Cumberbatch PLC |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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