Correlation Between Quality Houses and LH Hotel
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By analyzing existing cross correlation between Quality Houses Hotel and LH Hotel Leasehold, you can compare the effects of market volatilities on Quality Houses 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 Quality Houses with a short position of LH Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quality Houses and LH Hotel.
Diversification Opportunities for Quality Houses and LH Hotel
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Quality and LHHOTEL is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Quality Houses Hotel 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 Quality Houses 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 Quality Houses Hotel 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 Quality Houses i.e., Quality Houses and LH Hotel go up and down completely randomly.
Pair Corralation between Quality Houses and LH Hotel
Assuming the 90 days trading horizon Quality Houses Hotel is expected to under-perform the LH Hotel. In addition to that, Quality Houses is 17.65 times more volatile than LH Hotel Leasehold. It trades about -0.22 of its total potential returns per unit of risk. LH Hotel Leasehold is currently generating about 0.12 per unit of volatility. If you would invest 1,290 in LH Hotel Leasehold on August 27, 2024 and sell it today you would earn a total of 40.00 from holding LH Hotel Leasehold or generate 3.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Quality Houses Hotel vs. LH Hotel Leasehold
Performance |
| Timeline |
| Quality Houses Hotel |
| LH Hotel Leasehold |
Quality Houses and LH Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quality Houses and LH Hotel
The main advantage of trading using opposite Quality Houses and LH Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quality Houses 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.| Quality Houses vs. Quality Houses Property | Quality Houses vs. Land and Houses | Quality Houses vs. WHA Premium Growth | Quality Houses vs. LH Hotel Leasehold |
| LH Hotel vs. LH Shopping Centers | LH Hotel vs. Quality Houses Property | LH Hotel vs. Impact Growth REIT | LH Hotel vs. CPN Retail Growth |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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