Correlation Between Quality Houses and LH Shopping
Can any of the company-specific risk be diversified away by investing in both Quality Houses and LH Shopping 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 Quality Houses and LH Shopping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quality Houses Property and LH Shopping Centers, you can compare the effects of market volatilities on Quality Houses and LH Shopping 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 Shopping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quality Houses and LH Shopping.
Diversification Opportunities for Quality Houses and LH Shopping
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Quality and LHSC is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Quality Houses Property and LH Shopping Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LH Shopping Centers 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 Property are associated (or correlated) with LH Shopping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LH Shopping Centers has no effect on the direction of Quality Houses i.e., Quality Houses and LH Shopping go up and down completely randomly.
Pair Corralation between Quality Houses and LH Shopping
Assuming the 90 days trading horizon Quality Houses Property is expected to under-perform the LH Shopping. In addition to that, Quality Houses is 35.38 times more volatile than LH Shopping Centers. It trades about -0.23 of its total potential returns per unit of risk. LH Shopping Centers is currently generating about 0.14 per unit of volatility. If you would invest 1,130 in LH Shopping Centers on November 2, 2024 and sell it today you would earn a total of 20.00 from holding LH Shopping Centers or generate 1.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quality Houses Property vs. LH Shopping Centers
Performance |
| Timeline |
| Quality Houses Property |
| LH Shopping Centers |
Quality Houses and LH Shopping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quality Houses and LH Shopping
The main advantage of trading using opposite Quality Houses and LH Shopping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quality Houses position performs unexpectedly, LH Shopping 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 Shopping will offset losses from the drop in LH Shopping's long position.| Quality Houses vs. Quality Houses Hotel | Quality Houses vs. LH Shopping Centers | Quality Houses vs. LH Hotel Leasehold | Quality Houses vs. Future Park Leasehold |
| LH Shopping vs. LH Hotel Leasehold | LH Shopping vs. Impact Growth REIT | LH Shopping vs. Quality Houses Property | LH Shopping 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |