Correlation Between Lippo General and Visi Media
Can any of the company-specific risk be diversified away by investing in both Lippo General and Visi Media 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 Visi Media 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 Visi Media Asia, you can compare the effects of market volatilities on Lippo General and Visi Media 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 Visi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lippo General and Visi Media.
Diversification Opportunities for Lippo General and Visi Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lippo and Visi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lippo General Insurance and Visi Media Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visi Media Asia 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 Visi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visi Media Asia has no effect on the direction of Lippo General i.e., Lippo General and Visi Media go up and down completely randomly.
Pair Corralation between Lippo General and Visi Media
If you would invest 35,400 in Lippo General Insurance on September 2, 2024 and sell it today you would earn a total of 1,400 from holding Lippo General Insurance or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Lippo General Insurance vs. Visi Media Asia
Performance |
| Timeline |
| Lippo General Insurance |
| Visi Media Asia |
Lippo General and Visi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lippo General and Visi Media
The main advantage of trading using opposite Lippo General and Visi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lippo General position performs unexpectedly, Visi Media 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 Visi Media will offset losses from the drop in Visi Media's 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 |
| Visi Media vs. Surya Semesta Internusa | Visi Media vs. Bumi Resources Minerals | Visi Media vs. Multipolar Tbk | Visi Media vs. Surya Citra Media |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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