Correlation Between Bank Bukopin and Lenox Pasifik
Can any of the company-specific risk be diversified away by investing in both Bank Bukopin and Lenox Pasifik 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 Bank Bukopin and Lenox Pasifik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Bukopin Tbk and Lenox Pasifik Investama, you can compare the effects of market volatilities on Bank Bukopin and Lenox Pasifik 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 Bank Bukopin with a short position of Lenox Pasifik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Bukopin and Lenox Pasifik.
Diversification Opportunities for Bank Bukopin and Lenox Pasifik
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Lenox is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bank Bukopin Tbk and Lenox Pasifik Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lenox Pasifik Investama and Bank Bukopin 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 Bank Bukopin Tbk are associated (or correlated) with Lenox Pasifik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lenox Pasifik Investama has no effect on the direction of Bank Bukopin i.e., Bank Bukopin and Lenox Pasifik go up and down completely randomly.
Pair Corralation between Bank Bukopin and Lenox Pasifik
Assuming the 90 days trading horizon Bank Bukopin Tbk is expected to under-perform the Lenox Pasifik. But the stock apears to be less risky and, when comparing its historical volatility, Bank Bukopin Tbk is 1.4 times less risky than Lenox Pasifik. The stock trades about -0.06 of its potential returns per unit of risk. The Lenox Pasifik Investama is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 6,400 in Lenox Pasifik Investama on August 26, 2024 and sell it today you would earn a total of 300.00 from holding Lenox Pasifik Investama or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Bukopin Tbk vs. Lenox Pasifik Investama
Performance |
| Timeline |
| Bank Bukopin Tbk |
| Lenox Pasifik Investama |
Bank Bukopin and Lenox Pasifik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Bukopin and Lenox Pasifik
The main advantage of trading using opposite Bank Bukopin and Lenox Pasifik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Bukopin position performs unexpectedly, Lenox Pasifik 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 Lenox Pasifik will offset losses from the drop in Lenox Pasifik's long position.| Bank Bukopin vs. Paninvest Tbk | Bank Bukopin vs. Panin Sekuritas Tbk | Bank Bukopin vs. Wahana Ottomitra Multiartha | Bank Bukopin vs. Lenox Pasifik Investama |
| Lenox Pasifik vs. Star Pacific Tbk | Lenox Pasifik vs. Multipolar Tbk | Lenox Pasifik vs. Lippo General Insurance | Lenox Pasifik vs. Paninvest Tbk |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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