Correlation Between PT Jobubu and Lion Metal
Can any of the company-specific risk be diversified away by investing in both PT Jobubu and Lion Metal 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 PT Jobubu and Lion Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Jobubu Jarum and Lion Metal Works, you can compare the effects of market volatilities on PT Jobubu and Lion Metal 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 PT Jobubu with a short position of Lion Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Jobubu and Lion Metal.
Diversification Opportunities for PT Jobubu and Lion Metal
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BEER and Lion is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding PT Jobubu Jarum and Lion Metal Works in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion Metal Works and PT Jobubu 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 PT Jobubu Jarum are associated (or correlated) with Lion Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion Metal Works has no effect on the direction of PT Jobubu i.e., PT Jobubu and Lion Metal go up and down completely randomly.
Pair Corralation between PT Jobubu and Lion Metal
Assuming the 90 days trading horizon PT Jobubu Jarum is expected to under-perform the Lion Metal. But the stock apears to be less risky and, when comparing its historical volatility, PT Jobubu Jarum is 1.82 times less risky than Lion Metal. The stock trades about -0.05 of its potential returns per unit of risk. The Lion Metal Works is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 77,655 in Lion Metal Works on November 27, 2024 and sell it today you would lose (31,055) from holding Lion Metal Works or give up 39.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
PT Jobubu Jarum vs. Lion Metal Works
Performance |
| Timeline |
| PT Jobubu Jarum |
| Lion Metal Works |
PT Jobubu and Lion Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Jobubu and Lion Metal
The main advantage of trading using opposite PT Jobubu and Lion Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Jobubu position performs unexpectedly, Lion Metal 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 Lion Metal will offset losses from the drop in Lion Metal's long position.| PT Jobubu vs. Cisarua Mountain Dairy | PT Jobubu vs. Triputra Agro Persada | PT Jobubu vs. Wahana Inti MakmurTbk | PT Jobubu vs. PT Hasnur Internasional |
| Lion Metal vs. Lionmesh Prima Tbk | Lion Metal vs. Pelangi Indah Canindo | Lion Metal vs. Indal Aluminium Industry | Lion Metal vs. Intanwijaya Internasional 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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