Correlation Between Lotte Chemical and Grand Kartech
Can any of the company-specific risk be diversified away by investing in both Lotte Chemical and Grand Kartech 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 Grand Kartech 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 Grand Kartech Tbk, you can compare the effects of market volatilities on Lotte Chemical and Grand Kartech 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 Grand Kartech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotte Chemical and Grand Kartech.
Diversification Opportunities for Lotte Chemical and Grand Kartech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lotte and Grand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lotte Chemical Titan and Grand Kartech Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Kartech Tbk 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 Grand Kartech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Kartech Tbk has no effect on the direction of Lotte Chemical i.e., Lotte Chemical and Grand Kartech go up and down completely randomly.
Pair Corralation between Lotte Chemical and Grand Kartech
If you would invest 43,600 in Grand Kartech Tbk on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Grand Kartech Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Lotte Chemical Titan vs. Grand Kartech Tbk
Performance |
| Timeline |
| Lotte Chemical Titan |
| Grand Kartech Tbk |
Lotte Chemical and Grand Kartech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotte Chemical and Grand Kartech
The main advantage of trading using opposite Lotte Chemical and Grand Kartech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotte Chemical position performs unexpectedly, Grand Kartech 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 Grand Kartech will offset losses from the drop in Grand Kartech's long position.| Lotte Chemical vs. Champion Pacific Indonesia | Lotte Chemical vs. Argha Karya Prima | Lotte Chemical vs. Asiaplast Industries Tbk | Lotte Chemical vs. Intanwijaya Internasional Tbk |
| Grand Kartech vs. Nanotech Indonesia Global | Grand Kartech vs. Inocycle Technology Tbk | Grand Kartech vs. Indosterling Technomedia Tbk | Grand Kartech vs. Wintermar Offshore Marine |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |