Correlation Between LPN Development and Grand Canal
Can any of the company-specific risk be diversified away by investing in both LPN Development and Grand Canal 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 LPN Development and Grand Canal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LPN Development Public and Grand Canal Land, you can compare the effects of market volatilities on LPN Development and Grand Canal 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 LPN Development with a short position of Grand Canal. Check out your portfolio center. Please also check ongoing floating volatility patterns of LPN Development and Grand Canal.
Diversification Opportunities for LPN Development and Grand Canal
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between LPN and Grand is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding LPN Development Public and Grand Canal Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Canal Land and LPN Development 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 LPN Development Public are associated (or correlated) with Grand Canal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Canal Land has no effect on the direction of LPN Development i.e., LPN Development and Grand Canal go up and down completely randomly.
Pair Corralation between LPN Development and Grand Canal
Assuming the 90 days trading horizon LPN Development Public is expected to under-perform the Grand Canal. But the stock apears to be less risky and, when comparing its historical volatility, LPN Development Public is 2.47 times less risky than Grand Canal. The stock trades about -0.35 of its potential returns per unit of risk. The Grand Canal Land is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 153.00 in Grand Canal Land on August 30, 2024 and sell it today you would earn a total of 12.00 from holding Grand Canal Land or generate 7.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LPN Development Public vs. Grand Canal Land
Performance |
| Timeline |
| LPN Development Public |
| Grand Canal Land |
LPN Development and Grand Canal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LPN Development and Grand Canal
The main advantage of trading using opposite LPN Development and Grand Canal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LPN Development position performs unexpectedly, Grand Canal 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 Grand Canal will offset losses from the drop in Grand Canal's long position.| LPN Development vs. Land and Houses | LPN Development vs. AP Public | LPN Development vs. Quality Houses Public | LPN Development vs. Siri Prime Office |
| Grand Canal vs. Bangkok Land Public | Grand Canal vs. Country Group Development | Grand Canal vs. Eastern Star Real | Grand Canal vs. Amata 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |