Correlation Between Future Park and LH Shopping

Can any of the company-specific risk be diversified away by investing in both Future Park 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 Future Park and LH Shopping into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Future Park Leasehold and LH Shopping Centers, you can compare the effects of market volatilities on Future Park 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 Future Park with a short position of LH Shopping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Park and LH Shopping.

Diversification Opportunities for Future Park and LH Shopping

0.0

Correlation Coefficient

Future Park  LH Shopping

Pay attention - limited upside

The 3 months correlation between Future and LHSC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Future Park Leasehold 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 Future Park 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 Future Park Leasehold 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 Future Park i.e., Future Park and LH Shopping go up and down completely randomly.

Pair Corralation between Future Park and LH Shopping

If you would invest  1,083  in LH Shopping Centers on September 5, 2024 and sell it today you would earn a total of  37.00  from holding LH Shopping Centers or generate 3.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Future Park Leasehold  vs.  LH Shopping Centers

Future Park Leasehold

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Future Park Leasehold has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Future Park is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

LH Shopping Centers

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in LH Shopping Centers are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, LH Shopping disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Future Park and LH Shopping

The main advantage of trading using opposite Future Park and LH Shopping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Future Park 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 Future Park Leasehold 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.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.