Correlation Between Lloyds Banking and PT Kalbe
Can any of the company-specific risk be diversified away by investing in both Lloyds Banking and PT Kalbe 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 Lloyds Banking and PT Kalbe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lloyds Banking Group and PT Kalbe Farma, you can compare the effects of market volatilities on Lloyds Banking and PT Kalbe 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 Lloyds Banking with a short position of PT Kalbe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lloyds Banking and PT Kalbe.
Diversification Opportunities for Lloyds Banking and PT Kalbe
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lloyds and PTKFF is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Lloyds Banking Group and PT Kalbe Farma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Kalbe Farma and Lloyds Banking 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 Lloyds Banking Group are associated (or correlated) with PT Kalbe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Kalbe Farma has no effect on the direction of Lloyds Banking i.e., Lloyds Banking and PT Kalbe go up and down completely randomly.
Pair Corralation between Lloyds Banking and PT Kalbe
Assuming the 90 days horizon Lloyds Banking Group is expected to generate 0.78 times more return on investment than PT Kalbe. However, Lloyds Banking Group is 1.29 times less risky than PT Kalbe. It trades about -0.02 of its potential returns per unit of risk. PT Kalbe Farma is currently generating about -0.22 per unit of risk. If you would invest 67.00 in Lloyds Banking Group on September 3, 2024 and sell it today you would lose (1.00) from holding Lloyds Banking Group or give up 1.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lloyds Banking Group vs. PT Kalbe Farma
Performance |
| Timeline |
| Lloyds Banking Group |
| PT Kalbe Farma |
Lloyds Banking and PT Kalbe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lloyds Banking and PT Kalbe
The main advantage of trading using opposite Lloyds Banking and PT Kalbe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lloyds Banking position performs unexpectedly, PT Kalbe 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 PT Kalbe will offset losses from the drop in PT Kalbe's long position.| Lloyds Banking vs. First Hawaiian | Lloyds Banking vs. Central Pacific Financial | Lloyds Banking vs. Territorial Bancorp | Lloyds Banking vs. Comerica |
| PT Kalbe vs. Amgen Inc | PT Kalbe vs. Bristol Myers Squibb | PT Kalbe vs. Roche Holding AG | PT Kalbe vs. Novartis AG |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |