Correlation Between Lizhan Environmental and Selina Hospitality
Can any of the company-specific risk be diversified away by investing in both Lizhan Environmental and Selina Hospitality 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 Lizhan Environmental and Selina Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lizhan Environmental and Selina Hospitality PLC, you can compare the effects of market volatilities on Lizhan Environmental and Selina Hospitality 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 Lizhan Environmental with a short position of Selina Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lizhan Environmental and Selina Hospitality.
Diversification Opportunities for Lizhan Environmental and Selina Hospitality
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lizhan and Selina is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lizhan Environmental and Selina Hospitality PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selina Hospitality PLC and Lizhan Environmental 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 Lizhan Environmental are associated (or correlated) with Selina Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selina Hospitality PLC has no effect on the direction of Lizhan Environmental i.e., Lizhan Environmental and Selina Hospitality go up and down completely randomly.
Pair Corralation between Lizhan Environmental and Selina Hospitality
If you would invest 0.00 in Selina Hospitality PLC on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Selina Hospitality PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Lizhan Environmental vs. Selina Hospitality PLC
Performance |
| Timeline |
| Lizhan Environmental |
| Selina Hospitality PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lizhan Environmental and Selina Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lizhan Environmental and Selina Hospitality
The main advantage of trading using opposite Lizhan Environmental and Selina Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lizhan Environmental position performs unexpectedly, Selina Hospitality 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 Selina Hospitality will offset losses from the drop in Selina Hospitality's long position.| Lizhan Environmental vs. Flanigans Enterprises | Lizhan Environmental vs. BJs Restaurants | Lizhan Environmental vs. Brinker International | Lizhan Environmental vs. Bloomin Brands |
| Selina Hospitality vs. NETGEAR | Selina Hospitality vs. Keurig Dr Pepper | Selina Hospitality vs. Japan Tobacco ADR | Selina Hospitality vs. Ambev SA ADR |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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