Correlation Between Lippo Karawaci and Mitra Keluarga
Can any of the company-specific risk be diversified away by investing in both Lippo Karawaci and Mitra Keluarga 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 Karawaci and Mitra Keluarga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lippo Karawaci Tbk and Mitra Keluarga Karyasehat, you can compare the effects of market volatilities on Lippo Karawaci and Mitra Keluarga 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 Karawaci with a short position of Mitra Keluarga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lippo Karawaci and Mitra Keluarga.
Diversification Opportunities for Lippo Karawaci and Mitra Keluarga
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lippo and Mitra is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Lippo Karawaci Tbk and Mitra Keluarga Karyasehat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Keluarga Karyasehat and Lippo Karawaci 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 Karawaci Tbk are associated (or correlated) with Mitra Keluarga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Keluarga Karyasehat has no effect on the direction of Lippo Karawaci i.e., Lippo Karawaci and Mitra Keluarga go up and down completely randomly.
Pair Corralation between Lippo Karawaci and Mitra Keluarga
Assuming the 90 days trading horizon Lippo Karawaci Tbk is expected to under-perform the Mitra Keluarga. In addition to that, Lippo Karawaci is 1.97 times more volatile than Mitra Keluarga Karyasehat. It trades about -0.17 of its total potential returns per unit of risk. Mitra Keluarga Karyasehat is currently generating about -0.23 per unit of volatility. If you would invest 290,000 in Mitra Keluarga Karyasehat on August 24, 2024 and sell it today you would lose (28,000) from holding Mitra Keluarga Karyasehat or give up 9.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lippo Karawaci Tbk vs. Mitra Keluarga Karyasehat
Performance |
| Timeline |
| Lippo Karawaci Tbk |
| Mitra Keluarga Karyasehat |
Lippo Karawaci and Mitra Keluarga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lippo Karawaci and Mitra Keluarga
The main advantage of trading using opposite Lippo Karawaci and Mitra Keluarga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lippo Karawaci position performs unexpectedly, Mitra Keluarga 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 Mitra Keluarga will offset losses from the drop in Mitra Keluarga's long position.| Lippo Karawaci vs. Bumi Serpong Damai | Lippo Karawaci vs. Alam Sutera Realty | Lippo Karawaci vs. Summarecon Agung Tbk | Lippo Karawaci vs. Ciputra Development Tbk |
| Mitra Keluarga vs. Matahari Department Store | Mitra Keluarga vs. Surya Citra Media | Mitra Keluarga vs. Sawit Sumbermas Sarana | Mitra Keluarga vs. Lippo Karawaci 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |