Correlation Between Lionmesh Prima and Inter Delta
Can any of the company-specific risk be diversified away by investing in both Lionmesh Prima and Inter Delta 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 Lionmesh Prima and Inter Delta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lionmesh Prima Tbk and Inter Delta Tbk, you can compare the effects of market volatilities on Lionmesh Prima and Inter Delta 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 Lionmesh Prima with a short position of Inter Delta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lionmesh Prima and Inter Delta.
Diversification Opportunities for Lionmesh Prima and Inter Delta
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lionmesh and Inter is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Lionmesh Prima Tbk and Inter Delta Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Delta Tbk and Lionmesh Prima 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 Lionmesh Prima Tbk are associated (or correlated) with Inter Delta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Delta Tbk has no effect on the direction of Lionmesh Prima i.e., Lionmesh Prima and Inter Delta go up and down completely randomly.
Pair Corralation between Lionmesh Prima and Inter Delta
Assuming the 90 days trading horizon Lionmesh Prima Tbk is expected to under-perform the Inter Delta. But the stock apears to be less risky and, when comparing its historical volatility, Lionmesh Prima Tbk is 2.76 times less risky than Inter Delta. The stock trades about -0.05 of its potential returns per unit of risk. The Inter Delta Tbk is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 15,600 in Inter Delta Tbk on August 30, 2024 and sell it today you would earn a total of 3,000 from holding Inter Delta Tbk or generate 19.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lionmesh Prima Tbk vs. Inter Delta Tbk
Performance |
| Timeline |
| Lionmesh Prima Tbk |
| Inter Delta Tbk |
Lionmesh Prima and Inter Delta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lionmesh Prima and Inter Delta
The main advantage of trading using opposite Lionmesh Prima and Inter Delta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lionmesh Prima position performs unexpectedly, Inter Delta 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 Inter Delta will offset losses from the drop in Inter Delta's long position.| Lionmesh Prima vs. Lion Metal Works | Lionmesh Prima vs. Pelangi Indah Canindo | Lionmesh Prima vs. Indal Aluminium Industry | Lionmesh Prima vs. Tembaga Mulia Semanan |
| Inter Delta vs. Intraco Penta Tbk | Inter Delta vs. Jakarta Setiabudi Internasional | Inter Delta vs. Perdana Bangun Pusaka | Inter Delta vs. Gema Grahasarana 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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