Correlation Between Canlan Ice and PT Lippo
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and PT Lippo 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 Canlan Ice and PT Lippo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and PT Lippo Karawaci, you can compare the effects of market volatilities on Canlan Ice and PT Lippo 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 Canlan Ice with a short position of PT Lippo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and PT Lippo.
Diversification Opportunities for Canlan Ice and PT Lippo
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Canlan and PTLKF is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and PT Lippo Karawaci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Lippo Karawaci and Canlan Ice 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 Canlan Ice Sports are associated (or correlated) with PT Lippo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Lippo Karawaci has no effect on the direction of Canlan Ice i.e., Canlan Ice and PT Lippo go up and down completely randomly.
Pair Corralation between Canlan Ice and PT Lippo
If you would invest 0.90 in PT Lippo Karawaci on November 2, 2024 and sell it today you would earn a total of 0.10 from holding PT Lippo Karawaci or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. PT Lippo Karawaci
Performance |
| Timeline |
| Canlan Ice Sports |
| PT Lippo Karawaci |
Canlan Ice and PT Lippo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and PT Lippo
The main advantage of trading using opposite Canlan Ice and PT Lippo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, PT Lippo 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 PT Lippo will offset losses from the drop in PT Lippo's long position.| Canlan Ice vs. Highway Holdings Limited | Canlan Ice vs. ioneer Ltd American | Canlan Ice vs. Summit Materials | Canlan Ice vs. The Coca Cola |
| PT Lippo vs. Reliance Global Group | PT Lippo vs. Gilat Satellite Networks | PT Lippo vs. Check Point Software | PT Lippo vs. LightPath Technologies |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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