Correlation Between Lionmesh Prima and Unggul Indah
Can any of the company-specific risk be diversified away by investing in both Lionmesh Prima and Unggul 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 Unggul 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 Unggul Indah Cahaya, you can compare the effects of market volatilities on Lionmesh Prima and Unggul 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 Unggul Indah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lionmesh Prima and Unggul Indah.
Diversification Opportunities for Lionmesh Prima and Unggul Indah
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lionmesh and Unggul is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Lionmesh Prima Tbk and Unggul Indah Cahaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unggul Indah Cahaya 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 Unggul Indah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unggul Indah Cahaya has no effect on the direction of Lionmesh Prima i.e., Lionmesh Prima and Unggul Indah go up and down completely randomly.
Pair Corralation between Lionmesh Prima and Unggul 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lionmesh Prima Tbk vs. Unggul Indah Cahaya
Performance |
| Timeline |
| Lionmesh Prima Tbk |
| Unggul Indah Cahaya |
Lionmesh Prima and Unggul Indah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lionmesh Prima and Unggul Indah
The main advantage of trading using opposite Lionmesh Prima and Unggul Indah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lionmesh Prima position performs unexpectedly, Unggul 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 Unggul Indah will offset losses from the drop in Unggul 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 |
| Unggul Indah vs. Trias Sentosa Tbk | Unggul Indah vs. Suparma Tbk | Unggul Indah vs. Tembaga Mulia Semanan | Unggul Indah vs. Surya Toto Indonesia |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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