Correlation Between Rabbit Holdings and Laguna Resorts
Can any of the company-specific risk be diversified away by investing in both Rabbit Holdings and Laguna Resorts 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 Rabbit Holdings and Laguna Resorts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rabbit Holdings PCL and Laguna Resorts Hotels, you can compare the effects of market volatilities on Rabbit Holdings and Laguna Resorts 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 Rabbit Holdings with a short position of Laguna Resorts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rabbit Holdings and Laguna Resorts.
Diversification Opportunities for Rabbit Holdings and Laguna Resorts
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rabbit and Laguna is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rabbit Holdings PCL and Laguna Resorts Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Laguna Resorts Hotels and Rabbit Holdings 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 Rabbit Holdings PCL are associated (or correlated) with Laguna Resorts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Laguna Resorts Hotels has no effect on the direction of Rabbit Holdings i.e., Rabbit Holdings and Laguna Resorts go up and down completely randomly.
Pair Corralation between Rabbit Holdings and Laguna Resorts
If you would invest 3,900 in Laguna Resorts Hotels on November 3, 2024 and sell it today you would earn a total of 50.00 from holding Laguna Resorts Hotels or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.41% |
| Values | Daily Returns |
Rabbit Holdings PCL vs. Laguna Resorts Hotels
Performance |
| Timeline |
| Rabbit Holdings PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Laguna Resorts Hotels |
Rabbit Holdings and Laguna Resorts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rabbit Holdings and Laguna Resorts
The main advantage of trading using opposite Rabbit Holdings and Laguna Resorts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rabbit Holdings position performs unexpectedly, Laguna Resorts 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 Laguna Resorts will offset losses from the drop in Laguna Resorts' long position.| Rabbit Holdings vs. VGI Public | Rabbit Holdings vs. CH Karnchang Public | Rabbit Holdings vs. i Tail Corp PCL |
| Laguna Resorts vs. OHTL Public | Laguna Resorts vs. LPN Development Public | Laguna Resorts vs. The Erawan Group | Laguna Resorts vs. MBK 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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