Correlation Between LH Shopping and Bangkok Commercial
Can any of the company-specific risk be diversified away by investing in both LH Shopping and Bangkok Commercial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining LH Shopping and Bangkok Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LH Shopping Centers and Bangkok Commercial Property, you can compare the effects of market volatilities on LH Shopping and Bangkok Commercial 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 Shopping with a short position of Bangkok Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of LH Shopping and Bangkok Commercial.
Diversification Opportunities for LH Shopping and Bangkok Commercial
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between LHSC and Bangkok is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding LH Shopping Centers and Bangkok Commercial Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Commercial and LH Shopping 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 Shopping Centers are associated (or correlated) with Bangkok Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Commercial has no effect on the direction of LH Shopping i.e., LH Shopping and Bangkok Commercial go up and down completely randomly.
Pair Corralation between LH Shopping and Bangkok Commercial
Assuming the 90 days trading horizon LH Shopping is expected to generate 67.67 times less return on investment than Bangkok Commercial. But when comparing it to its historical volatility, LH Shopping Centers is 78.37 times less risky than Bangkok Commercial. It trades about 0.15 of its potential returns per unit of risk. Bangkok Commercial Property is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Bangkok Commercial Property on September 3, 2024 and sell it today you would earn a total of 905.00 from holding Bangkok Commercial Property or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
LH Shopping Centers vs. Bangkok Commercial Property
Performance |
| Timeline |
| LH Shopping Centers |
| Bangkok Commercial |
LH Shopping and Bangkok Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LH Shopping and Bangkok Commercial
The main advantage of trading using opposite LH Shopping and Bangkok Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LH Shopping position performs unexpectedly, Bangkok Commercial 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 Bangkok Commercial will offset losses from the drop in Bangkok Commercial's long position.| LH Shopping vs. LH Hotel Leasehold | LH Shopping vs. Impact Growth REIT | LH Shopping vs. Quality Houses Property | LH Shopping vs. CPN Retail Growth |
| Bangkok Commercial vs. WHA Premium Growth | Bangkok Commercial vs. Impact Growth REIT | Bangkok Commercial vs. LH Shopping Centers | Bangkok Commercial vs. Golden Ventures Leasehold |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |