Correlation Between Laguna Resorts and Platinum
Can any of the company-specific risk be diversified away by investing in both Laguna Resorts and Platinum 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 Laguna Resorts and Platinum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Laguna Resorts Hotels and The Platinum Group, you can compare the effects of market volatilities on Laguna Resorts and Platinum 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 Laguna Resorts with a short position of Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laguna Resorts and Platinum.
Diversification Opportunities for Laguna Resorts and Platinum
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Laguna and Platinum is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Laguna Resorts Hotels and The Platinum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Group and Laguna Resorts 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 Laguna Resorts Hotels are associated (or correlated) with Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Group has no effect on the direction of Laguna Resorts i.e., Laguna Resorts and Platinum go up and down completely randomly.
Pair Corralation between Laguna Resorts and Platinum
Assuming the 90 days trading horizon Laguna Resorts Hotels is expected to generate 1.0 times more return on investment than Platinum. However, Laguna Resorts Hotels is 1.0 times less risky than Platinum. It trades about 0.04 of its potential returns per unit of risk. The Platinum Group is currently generating about 0.04 per unit of risk. If you would invest 3,440 in Laguna Resorts Hotels on September 14, 2024 and sell it today you would earn a total of 435.00 from holding Laguna Resorts Hotels or generate 12.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Laguna Resorts Hotels vs. The Platinum Group
Performance |
| Timeline |
| Laguna Resorts Hotels |
| Platinum Group |
Laguna Resorts and Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Laguna Resorts and Platinum
The main advantage of trading using opposite Laguna Resorts and Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laguna Resorts position performs unexpectedly, Platinum 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 Platinum will offset losses from the drop in Platinum's long position.| Laguna Resorts vs. OHTL Public | Laguna Resorts vs. LPN Development Public | Laguna Resorts vs. The Erawan Group | Laguna Resorts vs. MBK Public |
| Platinum vs. Laguna Resorts Hotels | Platinum vs. Rich Sport Public | Platinum vs. The Navakij Insurance | Platinum vs. Srinanaporn Marketing 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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