Correlation Between Lippo General and Trinitan Metals
Can any of the company-specific risk be diversified away by investing in both Lippo General and Trinitan Metals 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 Lippo General and Trinitan Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lippo General Insurance and Trinitan Metals and, you can compare the effects of market volatilities on Lippo General and Trinitan Metals 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 Lippo General with a short position of Trinitan Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lippo General and Trinitan Metals.
Diversification Opportunities for Lippo General and Trinitan Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lippo and Trinitan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lippo General Insurance and Trinitan Metals and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinitan Metals and Lippo General 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 Lippo General Insurance are associated (or correlated) with Trinitan Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinitan Metals has no effect on the direction of Lippo General i.e., Lippo General and Trinitan Metals go up and down completely randomly.
Pair Corralation between Lippo General and Trinitan Metals
If you would invest 31,000 in Lippo General Insurance on August 28, 2024 and sell it today you would earn a total of 5,600 from holding Lippo General Insurance or generate 18.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lippo General Insurance vs. Trinitan Metals and
Performance |
| Timeline |
| Lippo General Insurance |
| Trinitan Metals |
Lippo General and Trinitan Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lippo General and Trinitan Metals
The main advantage of trading using opposite Lippo General and Trinitan Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lippo General position performs unexpectedly, Trinitan Metals 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 Trinitan Metals will offset losses from the drop in Trinitan Metals' long position.| Lippo General vs. Maskapai Reasuransi Indonesia | Lippo General vs. Lenox Pasifik Investama | Lippo General vs. Paninvest Tbk | Lippo General vs. Bank Mayapada Internasional |
| Trinitan Metals vs. Merdeka Copper Gold | Trinitan Metals vs. Aneka Tambang Persero | Trinitan Metals vs. Bumi Resources Minerals | Trinitan Metals vs. Timah Persero 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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