Correlation Between WHA Industrial and LH Hotel
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By analyzing existing cross correlation between WHA Industrial Leasehold and LH Hotel Leasehold, you can compare the effects of market volatilities on WHA Industrial 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 WHA Industrial with a short position of LH Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHA Industrial and LH Hotel.
Diversification Opportunities for WHA Industrial and LH Hotel
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between WHA and LHHOTEL is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding WHA Industrial Leasehold 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 WHA Industrial 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 WHA Industrial Leasehold 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 WHA Industrial i.e., WHA Industrial and LH Hotel go up and down completely randomly.
Pair Corralation between WHA Industrial and LH Hotel
Assuming the 90 days trading horizon WHA Industrial Leasehold is expected to generate 0.79 times more return on investment than LH Hotel. However, WHA Industrial Leasehold is 1.27 times less risky than LH Hotel. It trades about 0.17 of its potential returns per unit of risk. LH Hotel Leasehold is currently generating about -0.07 per unit of risk. If you would invest 607.00 in WHA Industrial Leasehold on August 30, 2024 and sell it today you would earn a total of 48.00 from holding WHA Industrial Leasehold or generate 7.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WHA Industrial Leasehold vs. LH Hotel Leasehold
Performance |
| Timeline |
| WHA Industrial Leasehold |
| LH Hotel Leasehold |
WHA Industrial and LH Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WHA Industrial and LH Hotel
The main advantage of trading using opposite WHA Industrial and LH Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHA Industrial 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.| WHA Industrial vs. Quality Houses Hotel | WHA Industrial vs. Quality Houses Property | WHA Industrial vs. CK Power Public | WHA Industrial vs. Thai Metal Drum |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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