Correlation Between Lionmesh Prima and Surya Toto
Can any of the company-specific risk be diversified away by investing in both Lionmesh Prima and Surya Toto 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 Surya Toto 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 Surya Toto Indonesia, you can compare the effects of market volatilities on Lionmesh Prima and Surya Toto 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 Surya Toto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lionmesh Prima and Surya Toto.
Diversification Opportunities for Lionmesh Prima and Surya Toto
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lionmesh and Surya is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Lionmesh Prima Tbk and Surya Toto Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Toto Indonesia 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 Surya Toto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Toto Indonesia has no effect on the direction of Lionmesh Prima i.e., Lionmesh Prima and Surya Toto go up and down completely randomly.
Pair Corralation between Lionmesh Prima and Surya Toto
Assuming the 90 days trading horizon Lionmesh Prima Tbk is expected to under-perform the Surya Toto. In addition to that, Lionmesh Prima is 2.34 times more volatile than Surya Toto Indonesia. It trades about -0.05 of its total potential returns per unit of risk. Surya Toto Indonesia is currently generating about 0.01 per unit of volatility. If you would invest 21,604 in Surya Toto Indonesia on November 27, 2024 and sell it today you would lose (4.00) from holding Surya Toto Indonesia or give up 0.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lionmesh Prima Tbk vs. Surya Toto Indonesia
Performance |
| Timeline |
| Lionmesh Prima Tbk |
| Surya Toto Indonesia |
Lionmesh Prima and Surya Toto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lionmesh Prima and Surya Toto
The main advantage of trading using opposite Lionmesh Prima and Surya Toto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lionmesh Prima position performs unexpectedly, Surya Toto 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 Surya Toto will offset losses from the drop in Surya Toto'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 |
| Surya Toto vs. Unggul Indah Cahaya | Surya Toto vs. Tembaga Mulia Semanan | Surya Toto vs. PT Mulia Industrindo | Surya Toto vs. Trias Sentosa 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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