Correlation Between Lighthouse Hotel and PANASIAN POWER
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By analyzing existing cross correlation between Lighthouse Hotel PLC and PANASIAN POWER PLC, you can compare the effects of market volatilities on Lighthouse Hotel and PANASIAN POWER 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 PANASIAN POWER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lighthouse Hotel and PANASIAN POWER.
Diversification Opportunities for Lighthouse Hotel and PANASIAN POWER
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lighthouse and PANASIAN is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Lighthouse Hotel PLC and PANASIAN POWER PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PANASIAN POWER PLC 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 PANASIAN POWER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PANASIAN POWER PLC has no effect on the direction of Lighthouse Hotel i.e., Lighthouse Hotel and PANASIAN POWER go up and down completely randomly.
Pair Corralation between Lighthouse Hotel and PANASIAN POWER
Assuming the 90 days trading horizon Lighthouse Hotel PLC is expected to generate 1.29 times more return on investment than PANASIAN POWER. However, Lighthouse Hotel is 1.29 times more volatile than PANASIAN POWER PLC. It trades about 0.18 of its potential returns per unit of risk. PANASIAN POWER PLC is currently generating about 0.01 per unit of risk. If you would invest 4,740 in Lighthouse Hotel PLC on August 30, 2024 and sell it today you would earn a total of 490.00 from holding Lighthouse Hotel PLC or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Lighthouse Hotel PLC vs. PANASIAN POWER PLC
Performance |
| Timeline |
| Lighthouse Hotel PLC |
| PANASIAN POWER PLC |
Lighthouse Hotel and PANASIAN POWER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lighthouse Hotel and PANASIAN POWER
The main advantage of trading using opposite Lighthouse Hotel and PANASIAN POWER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lighthouse Hotel position performs unexpectedly, PANASIAN POWER 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 PANASIAN POWER will offset losses from the drop in PANASIAN POWER's long position.| Lighthouse Hotel vs. EX PACK RUGATED CARTONS | Lighthouse Hotel vs. PANASIAN POWER PLC | Lighthouse Hotel vs. Distilleries Company of | Lighthouse Hotel vs. Palm Garden Hotels |
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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