Correlation Between LH Shopping and Hydrogen Freehold

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Can any of the company-specific risk be diversified away by investing in both LH Shopping and Hydrogen Freehold 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 Hydrogen Freehold 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 Hydrogen Freehold Leasehold, you can compare the effects of market volatilities on LH Shopping and Hydrogen Freehold 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 Hydrogen Freehold. Check out your portfolio center. Please also check ongoing floating volatility patterns of LH Shopping and Hydrogen Freehold.

Diversification Opportunities for LH Shopping and Hydrogen Freehold

0.16
  Correlation Coefficient

Average diversification

The 3 months correlation between LHSC and Hydrogen is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding LH Shopping Centers and Hydrogen Freehold Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hydrogen Freehold 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 Hydrogen Freehold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hydrogen Freehold has no effect on the direction of LH Shopping i.e., LH Shopping and Hydrogen Freehold go up and down completely randomly.

Pair Corralation between LH Shopping and Hydrogen Freehold

Assuming the 90 days trading horizon LH Shopping Centers is expected to generate 1.24 times more return on investment than Hydrogen Freehold. However, LH Shopping is 1.24 times more volatile than Hydrogen Freehold Leasehold. It trades about 0.05 of its potential returns per unit of risk. Hydrogen Freehold Leasehold is currently generating about 0.02 per unit of risk. If you would invest  836.00  in LH Shopping Centers on September 2, 2024 and sell it today you would earn a total of  294.00  from holding LH Shopping Centers or generate 35.17% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy99.59%
ValuesDaily Returns

LH Shopping Centers  vs.  Hydrogen Freehold Leasehold

 Performance 
       Timeline  
LH Shopping Centers 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in LH Shopping Centers are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, LH Shopping disclosed solid returns over the last few months and may actually be approaching a breakup point.
Hydrogen Freehold 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Hydrogen Freehold Leasehold are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Hydrogen Freehold is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

LH Shopping and Hydrogen Freehold Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with LH Shopping and Hydrogen Freehold

The main advantage of trading using opposite LH Shopping and Hydrogen Freehold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LH Shopping position performs unexpectedly, Hydrogen Freehold 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 Hydrogen Freehold will offset losses from the drop in Hydrogen Freehold's long position.
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The idea behind LH Shopping Centers and Hydrogen Freehold Leasehold pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

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