Correlation Between Inter Delta and Lionmesh Prima
Can any of the company-specific risk be diversified away by investing in both Inter Delta and Lionmesh Prima 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 Inter Delta and Lionmesh Prima into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inter Delta Tbk and Lionmesh Prima Tbk, you can compare the effects of market volatilities on Inter Delta and Lionmesh Prima 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 Inter Delta with a short position of Lionmesh Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inter Delta and Lionmesh Prima.
Diversification Opportunities for Inter Delta and Lionmesh Prima
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Inter and Lionmesh is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Inter Delta Tbk and Lionmesh Prima Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lionmesh Prima Tbk and Inter Delta 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 Inter Delta Tbk are associated (or correlated) with Lionmesh Prima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lionmesh Prima Tbk has no effect on the direction of Inter Delta i.e., Inter Delta and Lionmesh Prima go up and down completely randomly.
Pair Corralation between Inter Delta and Lionmesh Prima
Assuming the 90 days trading horizon Inter Delta Tbk is expected to generate 3.36 times more return on investment than Lionmesh Prima. However, Inter Delta is 3.36 times more volatile than Lionmesh Prima Tbk. It trades about 0.06 of its potential returns per unit of risk. Lionmesh Prima Tbk is currently generating about 0.0 per unit of risk. If you would invest 14,400 in Inter Delta Tbk on August 27, 2024 and sell it today you would earn a total of 7,400 from holding Inter Delta Tbk or generate 51.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inter Delta Tbk vs. Lionmesh Prima Tbk
Performance |
| Timeline |
| Inter Delta Tbk |
| Lionmesh Prima Tbk |
Inter Delta and Lionmesh Prima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inter Delta and Lionmesh Prima
The main advantage of trading using opposite Inter Delta and Lionmesh Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inter Delta position performs unexpectedly, Lionmesh Prima 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 Lionmesh Prima will offset losses from the drop in Lionmesh Prima's long position.| Inter Delta vs. Intraco Penta Tbk | Inter Delta vs. Jakarta Setiabudi Internasional | Inter Delta vs. Perdana Bangun Pusaka | Inter Delta vs. Gema Grahasarana Tbk |
| Lionmesh Prima vs. Lion Metal Works | Lionmesh Prima vs. Pelangi Indah Canindo | Lionmesh Prima vs. Indal Aluminium Industry | Lionmesh Prima vs. Tembaga Mulia Semanan |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |