Correlation Between CenterPoint Energy and PT Lippo
Can any of the company-specific risk be diversified away by investing in both CenterPoint Energy 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 CenterPoint Energy and PT Lippo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CenterPoint Energy and PT Lippo Karawaci, you can compare the effects of market volatilities on CenterPoint Energy 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 CenterPoint Energy with a short position of PT Lippo. Check out your portfolio center. Please also check ongoing floating volatility patterns of CenterPoint Energy and PT Lippo.
Diversification Opportunities for CenterPoint Energy and PT Lippo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CenterPoint and PTLKF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CenterPoint Energy 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 CenterPoint Energy 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 CenterPoint Energy 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 CenterPoint Energy i.e., CenterPoint Energy and PT Lippo go up and down completely randomly.
Pair Corralation between CenterPoint Energy and PT Lippo
If you would invest 2,959 in CenterPoint Energy on October 22, 2024 and sell it today you would earn a total of 297.00 from holding CenterPoint Energy or generate 10.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CenterPoint Energy vs. PT Lippo Karawaci
Performance |
| Timeline |
| CenterPoint Energy |
| PT Lippo Karawaci |
CenterPoint Energy and PT Lippo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CenterPoint Energy and PT Lippo
The main advantage of trading using opposite CenterPoint Energy and PT Lippo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CenterPoint Energy 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.| CenterPoint Energy vs. DTE Energy | CenterPoint Energy vs. Alliant Energy Corp | CenterPoint Energy vs. Ameren Corp | CenterPoint Energy vs. Pinnacle West Capital |
| PT Lippo vs. Empresa Distribuidora y | PT Lippo vs. NiSource | PT Lippo vs. Enlight Renewable Energy | PT Lippo vs. CenterPoint Energy |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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