Correlation Between Lionmesh Prima and Pelangi Indah
Can any of the company-specific risk be diversified away by investing in both Lionmesh Prima and Pelangi Indah 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 Pelangi Indah 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 Pelangi Indah Canindo, you can compare the effects of market volatilities on Lionmesh Prima and Pelangi Indah 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 Pelangi Indah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lionmesh Prima and Pelangi Indah.
Diversification Opportunities for Lionmesh Prima and Pelangi Indah
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lionmesh and Pelangi is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Lionmesh Prima Tbk and Pelangi Indah Canindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pelangi Indah Canindo 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 Pelangi Indah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pelangi Indah Canindo has no effect on the direction of Lionmesh Prima i.e., Lionmesh Prima and Pelangi Indah go up and down completely randomly.
Pair Corralation between Lionmesh Prima and Pelangi Indah
If you would invest 25,600 in Lionmesh Prima Tbk on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Lionmesh Prima Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lionmesh Prima Tbk vs. Pelangi Indah Canindo
Performance |
| Timeline |
| Lionmesh Prima Tbk |
| Pelangi Indah Canindo |
Lionmesh Prima and Pelangi Indah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lionmesh Prima and Pelangi Indah
The main advantage of trading using opposite Lionmesh Prima and Pelangi Indah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lionmesh Prima position performs unexpectedly, Pelangi Indah 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 Pelangi Indah will offset losses from the drop in Pelangi Indah'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 |
| Pelangi Indah vs. Lionmesh Prima Tbk | Pelangi Indah vs. PT Mulia Industrindo | Pelangi Indah vs. Lion Metal Works | Pelangi Indah vs. Tembaga Mulia Semanan |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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