Correlation Between PT Jobubu and Lippo General
Can any of the company-specific risk be diversified away by investing in both PT Jobubu and Lippo General 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 Lippo General 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 Lippo General Insurance, you can compare the effects of market volatilities on PT Jobubu and Lippo General 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 Lippo General. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Jobubu and Lippo General.
Diversification Opportunities for PT Jobubu and Lippo General
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between BEER and Lippo is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding PT Jobubu Jarum and Lippo General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lippo General Insurance 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 Lippo General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lippo General Insurance has no effect on the direction of PT Jobubu i.e., PT Jobubu and Lippo General go up and down completely randomly.
Pair Corralation between PT Jobubu and Lippo General
Assuming the 90 days trading horizon PT Jobubu Jarum is expected to under-perform the Lippo General. But the stock apears to be less risky and, when comparing its historical volatility, PT Jobubu Jarum is 1.71 times less risky than Lippo General. The stock trades about -0.11 of its potential returns per unit of risk. The Lippo General Insurance is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 37,600 in Lippo General Insurance on August 29, 2024 and sell it today you would lose (1,000.00) from holding Lippo General Insurance or give up 2.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
PT Jobubu Jarum vs. Lippo General Insurance
Performance |
| Timeline |
| PT Jobubu Jarum |
| Lippo General Insurance |
PT Jobubu and Lippo General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Jobubu and Lippo General
The main advantage of trading using opposite PT Jobubu and Lippo General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Jobubu position performs unexpectedly, Lippo General 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 Lippo General will offset losses from the drop in Lippo General's long position.| PT Jobubu vs. Bank Central Asia | PT Jobubu vs. Bank Rakyat Indonesia | PT Jobubu vs. Bayan Resources Tbk | PT Jobubu vs. Bank Mandiri Persero |
| Lippo General vs. Maskapai Reasuransi Indonesia | Lippo General vs. Lenox Pasifik Investama | Lippo General vs. Paninvest Tbk | Lippo General vs. Bank Mayapada Internasional |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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