Correlation Between Link Net and Star Pacific
Can any of the company-specific risk be diversified away by investing in both Link Net and Star Pacific 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 Link Net and Star Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Link Net Tbk and Star Pacific Tbk, you can compare the effects of market volatilities on Link Net and Star Pacific 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 Link Net with a short position of Star Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Link Net and Star Pacific.
Diversification Opportunities for Link Net and Star Pacific
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Link and Star is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Link Net Tbk and Star Pacific Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Pacific Tbk and Link Net 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 Link Net Tbk are associated (or correlated) with Star Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Pacific Tbk has no effect on the direction of Link Net i.e., Link Net and Star Pacific go up and down completely randomly.
Pair Corralation between Link Net and Star Pacific
Assuming the 90 days trading horizon Link Net Tbk is expected to generate 1.79 times more return on investment than Star Pacific. However, Link Net is 1.79 times more volatile than Star Pacific Tbk. It trades about -0.09 of its potential returns per unit of risk. Star Pacific Tbk is currently generating about -0.19 per unit of risk. If you would invest 130,000 in Link Net Tbk on August 29, 2024 and sell it today you would lose (10,000) from holding Link Net Tbk or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Link Net Tbk vs. Star Pacific Tbk
Performance |
| Timeline |
| Link Net Tbk |
| Star Pacific Tbk |
Link Net and Star Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Link Net and Star Pacific
The main advantage of trading using opposite Link Net and Star Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Link Net position performs unexpectedly, Star Pacific 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 Star Pacific will offset losses from the drop in Star Pacific's long position.| Link Net vs. Mitra Keluarga Karyasehat | Link Net vs. Surya Citra Media | Link Net vs. Matahari Department Store | Link Net vs. Puradelta Lestari PT |
| Star Pacific vs. Lenox Pasifik Investama | Star Pacific vs. Multipolar Tbk | Star Pacific vs. Lautan Luas Tbk | Star Pacific vs. Metrodata Electronics 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |