Correlation Between NSL Foods and LH Hotel
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By analyzing existing cross correlation between NSL Foods Public and LH Hotel Leasehold, you can compare the effects of market volatilities on NSL Foods and LH Hotel 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 NSL Foods with a short position of LH Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of NSL Foods and LH Hotel.
Diversification Opportunities for NSL Foods and LH Hotel
Poor diversification
The 3 months correlation between NSL and LHHOTEL is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding NSL Foods Public and LH Hotel Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LH Hotel Leasehold and NSL Foods 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 NSL Foods Public are associated (or correlated) with LH Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LH Hotel Leasehold has no effect on the direction of NSL Foods i.e., NSL Foods and LH Hotel go up and down completely randomly.
Pair Corralation between NSL Foods and LH Hotel
Assuming the 90 days trading horizon NSL Foods Public is expected to generate 1.09 times more return on investment than LH Hotel. However, NSL Foods is 1.09 times more volatile than LH Hotel Leasehold. It trades about 0.07 of its potential returns per unit of risk. LH Hotel Leasehold is currently generating about -0.03 per unit of risk. If you would invest 2,925 in NSL Foods Public on September 3, 2024 and sell it today you would earn a total of 300.00 from holding NSL Foods Public or generate 10.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NSL Foods Public vs. LH Hotel Leasehold
Performance |
| Timeline |
| NSL Foods Public |
| LH Hotel Leasehold |
NSL Foods and LH Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NSL Foods and LH Hotel
The main advantage of trading using opposite NSL Foods and LH Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NSL Foods position performs unexpectedly, LH Hotel 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 LH Hotel will offset losses from the drop in LH Hotel's long position.| NSL Foods vs. Charoen Pokphand Foods | NSL Foods vs. Copperwired Public | NSL Foods vs. Syntec Construction Public | NSL Foods vs. Asia Medical Agricultural |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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