Correlation Between CPN Retail and LH Shopping

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both CPN Retail 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 CPN Retail and LH Shopping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CPN Retail Growth and LH Shopping Centers, you can compare the effects of market volatilities on CPN Retail 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 CPN Retail with a short position of LH Shopping. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPN Retail and LH Shopping.

Diversification Opportunities for CPN Retail and LH Shopping

CPNLHSCDiversified AwayCPNLHSCDiversified Away100%
0.29
  Correlation Coefficient

Modest diversification

The 3 months correlation between CPN and LHSC is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding CPN Retail Growth 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 CPN Retail 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 CPN Retail Growth 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 CPN Retail i.e., CPN Retail and LH Shopping go up and down completely randomly.

Pair Corralation between CPN Retail and LH Shopping

Assuming the 90 days trading horizon CPN Retail is expected to generate 1.4 times less return on investment than LH Shopping. In addition to that, CPN Retail is 1.84 times more volatile than LH Shopping Centers. It trades about 0.03 of its total potential returns per unit of risk. LH Shopping Centers is currently generating about 0.08 per unit of volatility. If you would invest  1,105  in LH Shopping Centers on November 23, 2024 and sell it today you would earn a total of  35.00  from holding LH Shopping Centers or generate 3.17% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

CPN Retail Growth  vs.  LH Shopping Centers

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 0510
JavaScript chart by amCharts 3.21.15CPNREIT LHSC
       Timeline  
CPN Retail Growth 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CPN Retail Growth are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, CPN Retail is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb11.611.81212.212.412.6
LH Shopping Centers 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in LH Shopping Centers are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, LH Shopping is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb10.810.91111.111.211.311.411.511.6

CPN Retail and LH Shopping Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.24-3.17-2.11-1.050.01881.112.243.364.49 0.10.20.30.40.50.6
JavaScript chart by amCharts 3.21.15CPNREIT LHSC
       Returns  

Pair Trading with CPN Retail and LH Shopping

The main advantage of trading using opposite CPN Retail and LH Shopping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CPN Retail 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.
The idea behind CPN Retail Growth and LH Shopping Centers pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

Other Complementary Tools

Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets