Correlation Between Lotte Chemical and Sinergi Inti
Can any of the company-specific risk be diversified away by investing in both Lotte Chemical and Sinergi Inti 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 Lotte Chemical and Sinergi Inti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lotte Chemical Titan and Sinergi Inti Plastindo, you can compare the effects of market volatilities on Lotte Chemical and Sinergi Inti 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 Lotte Chemical with a short position of Sinergi Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotte Chemical and Sinergi Inti.
Diversification Opportunities for Lotte Chemical and Sinergi Inti
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lotte and Sinergi is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Lotte Chemical Titan and Sinergi Inti Plastindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinergi Inti Plastindo and Lotte Chemical 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 Lotte Chemical Titan are associated (or correlated) with Sinergi Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinergi Inti Plastindo has no effect on the direction of Lotte Chemical i.e., Lotte Chemical and Sinergi Inti go up and down completely randomly.
Pair Corralation between Lotte Chemical and Sinergi Inti
Assuming the 90 days trading horizon Lotte Chemical Titan is expected to generate 0.63 times more return on investment than Sinergi Inti. However, Lotte Chemical Titan is 1.58 times less risky than Sinergi Inti. It trades about 0.0 of its potential returns per unit of risk. Sinergi Inti Plastindo is currently generating about -0.06 per unit of risk. If you would invest 19,700 in Lotte Chemical Titan on August 31, 2024 and sell it today you would lose (900.00) from holding Lotte Chemical Titan or give up 4.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.44% |
| Values | Daily Returns |
Lotte Chemical Titan vs. Sinergi Inti Plastindo
Performance |
| Timeline |
| Lotte Chemical Titan |
| Sinergi Inti Plastindo |
Lotte Chemical and Sinergi Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotte Chemical and Sinergi Inti
The main advantage of trading using opposite Lotte Chemical and Sinergi Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotte Chemical position performs unexpectedly, Sinergi Inti 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 Sinergi Inti will offset losses from the drop in Sinergi Inti's long position.| Lotte Chemical vs. Perusahaan Gas Negara | Lotte Chemical vs. Vale Indonesia Tbk | Lotte Chemical vs. Telkom Indonesia Tbk | Lotte Chemical vs. Mitra Pinasthika Mustika |
| Sinergi Inti vs. Lotte Chemical Titan | Sinergi Inti vs. Agro Yasa Lestari | Sinergi Inti vs. Era Mandiri Cemerlang | Sinergi Inti vs. Jasnita Telekomindo 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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