Correlation Between Leyand International and Pertamina Geothermal
Can any of the company-specific risk be diversified away by investing in both Leyand International and Pertamina Geothermal 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 Leyand International and Pertamina Geothermal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leyand International Tbk and Pertamina Geothermal Energy, you can compare the effects of market volatilities on Leyand International and Pertamina Geothermal 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 Leyand International with a short position of Pertamina Geothermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leyand International and Pertamina Geothermal.
Diversification Opportunities for Leyand International and Pertamina Geothermal
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Leyand and Pertamina is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Leyand International Tbk and Pertamina Geothermal Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pertamina Geothermal and Leyand International 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 Leyand International Tbk are associated (or correlated) with Pertamina Geothermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pertamina Geothermal has no effect on the direction of Leyand International i.e., Leyand International and Pertamina Geothermal go up and down completely randomly.
Pair Corralation between Leyand International and Pertamina Geothermal
Assuming the 90 days trading horizon Leyand International Tbk is expected to generate 1.73 times more return on investment than Pertamina Geothermal. However, Leyand International is 1.73 times more volatile than Pertamina Geothermal Energy. It trades about 0.15 of its potential returns per unit of risk. Pertamina Geothermal Energy is currently generating about 0.04 per unit of risk. If you would invest 1,900 in Leyand International Tbk on November 3, 2024 and sell it today you would earn a total of 300.00 from holding Leyand International Tbk or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Leyand International Tbk vs. Pertamina Geothermal Energy
Performance |
| Timeline |
| Leyand International Tbk |
| Pertamina Geothermal |
Leyand International and Pertamina Geothermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leyand International and Pertamina Geothermal
The main advantage of trading using opposite Leyand International and Pertamina Geothermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leyand International position performs unexpectedly, Pertamina Geothermal 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 Pertamina Geothermal will offset losses from the drop in Pertamina Geothermal's long position.| Leyand International vs. Tera Data Indonusa | Leyand International vs. Indorama Synthetics Tbk | Leyand International vs. Trinitan Metals and | Leyand International vs. Metrodata Electronics Tbk |
| Pertamina Geothermal vs. Bank Ocbc Nisp | Pertamina Geothermal vs. Weha Transportasi Indonesia | Pertamina Geothermal 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |