Correlation Between Global Green and LH Hotel
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By analyzing existing cross correlation between Global Green Chemicals and LH Hotel Leasehold, you can compare the effects of market volatilities on Global Green 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 Global Green with a short position of LH Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Green and LH Hotel.
Diversification Opportunities for Global Green and LH Hotel
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and LHHOTEL is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Global Green Chemicals 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 Global Green 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 Global Green Chemicals 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 Global Green i.e., Global Green and LH Hotel go up and down completely randomly.
Pair Corralation between Global Green and LH Hotel
Assuming the 90 days trading horizon Global Green Chemicals is expected to generate 36.65 times more return on investment than LH Hotel. However, Global Green is 36.65 times more volatile than LH Hotel Leasehold. It trades about 0.04 of its potential returns per unit of risk. LH Hotel Leasehold is currently generating about 0.04 per unit of risk. If you would invest 1,459 in Global Green Chemicals on October 22, 2024 and sell it today you would lose (1,059) from holding Global Green Chemicals or give up 72.58% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Global Green Chemicals vs. LH Hotel Leasehold
Performance |
Timeline |
Global Green Chemicals |
LH Hotel Leasehold |
Global Green and LH Hotel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global Green and LH Hotel
The main advantage of trading using opposite Global Green and LH Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Green 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.Global Green vs. Ichitan Group Public | Global Green vs. Indorama Ventures PCL | Global Green vs. BCPG Public | Global Green vs. IRPC Public |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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