Correlation Between Lion Metal and Trinitan Metals
Can any of the company-specific risk be diversified away by investing in both Lion Metal and Trinitan Metals 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 Lion Metal and Trinitan Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion Metal Works and Trinitan Metals and, you can compare the effects of market volatilities on Lion Metal and Trinitan Metals 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 Lion Metal with a short position of Trinitan Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion Metal and Trinitan Metals.
Diversification Opportunities for Lion Metal and Trinitan Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lion and Trinitan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lion Metal Works and Trinitan Metals and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinitan Metals and Lion Metal 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 Lion Metal Works are associated (or correlated) with Trinitan Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinitan Metals has no effect on the direction of Lion Metal i.e., Lion Metal and Trinitan Metals go up and down completely randomly.
Pair Corralation between Lion Metal and Trinitan Metals
If you would invest 79,621 in Lion Metal Works on November 19, 2024 and sell it today you would lose (28,621) from holding Lion Metal Works or give up 35.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Lion Metal Works vs. Trinitan Metals and
Performance |
| Timeline |
| Lion Metal Works |
| Trinitan Metals |
Lion Metal and Trinitan Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion Metal and Trinitan Metals
The main advantage of trading using opposite Lion Metal and Trinitan Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion Metal position performs unexpectedly, Trinitan Metals 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 Trinitan Metals will offset losses from the drop in Trinitan Metals' long position.| Lion Metal vs. Lionmesh Prima Tbk | Lion Metal vs. Pelangi Indah Canindo | Lion Metal vs. Indal Aluminium Industry | Lion Metal vs. Intanwijaya Internasional Tbk |
| Trinitan Metals vs. Kedawung Setia Industrial | Trinitan Metals vs. Optima Prima Metal | Trinitan Metals vs. Pacific Strategic Financial | Trinitan Metals vs. Dharma Polimetal 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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