Correlation Between Turnkey Communication and LH Financial
Can any of the company-specific risk be diversified away by investing in both Turnkey Communication and LH Financial 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 Turnkey Communication and LH Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turnkey Communication Services and LH Financial Group, you can compare the effects of market volatilities on Turnkey Communication and LH Financial 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 Turnkey Communication with a short position of LH Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turnkey Communication and LH Financial.
Diversification Opportunities for Turnkey Communication and LH Financial
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Turnkey and LHFG is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Turnkey Communication Services and LH Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LH Financial Group and Turnkey Communication 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 Turnkey Communication Services are associated (or correlated) with LH Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LH Financial Group has no effect on the direction of Turnkey Communication i.e., Turnkey Communication and LH Financial go up and down completely randomly.
Pair Corralation between Turnkey Communication and LH Financial
Assuming the 90 days trading horizon Turnkey Communication Services is expected to generate 2.21 times more return on investment than LH Financial. However, Turnkey Communication is 2.21 times more volatile than LH Financial Group. It trades about 0.03 of its potential returns per unit of risk. LH Financial Group is currently generating about -0.04 per unit of risk. If you would invest 1,110 in Turnkey Communication Services on October 31, 2024 and sell it today you would earn a total of 10.00 from holding Turnkey Communication Services or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turnkey Communication Services vs. LH Financial Group
Performance |
| Timeline |
| Turnkey Communication |
| LH Financial Group |
Turnkey Communication and LH Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turnkey Communication and LH Financial
The main advantage of trading using opposite Turnkey Communication and LH Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turnkey Communication position performs unexpectedly, LH Financial 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 Financial will offset losses from the drop in LH Financial's long position.| Turnkey Communication vs. Sabuy Technology Public | Turnkey Communication vs. Takuni Group Public | Turnkey Communication vs. Ngern Tid Lor | Turnkey Communication vs. SVI Public |
| LH Financial vs. Quality Houses Public | LH Financial vs. Kiatnakin Phatra Bank | LH Financial vs. Land and Houses | LH Financial vs. TISCO Financial Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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