Correlation Between Lippo Karawaci and Mitra Pinasthika
Can any of the company-specific risk be diversified away by investing in both Lippo Karawaci and Mitra Pinasthika 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 Pinasthika 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 Pinasthika Mustika, you can compare the effects of market volatilities on Lippo Karawaci and Mitra Pinasthika 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 Pinasthika. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lippo Karawaci and Mitra Pinasthika.
Diversification Opportunities for Lippo Karawaci and Mitra Pinasthika
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lippo and Mitra is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Lippo Karawaci Tbk and Mitra Pinasthika Mustika in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Pinasthika Mustika 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 Pinasthika. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Pinasthika Mustika has no effect on the direction of Lippo Karawaci i.e., Lippo Karawaci and Mitra Pinasthika go up and down completely randomly.
Pair Corralation between Lippo Karawaci and Mitra Pinasthika
Assuming the 90 days trading horizon Lippo Karawaci Tbk is expected to under-perform the Mitra Pinasthika. In addition to that, Lippo Karawaci is 6.95 times more volatile than Mitra Pinasthika Mustika. It trades about -0.15 of its total potential returns per unit of risk. Mitra Pinasthika Mustika is currently generating about -0.25 per unit of volatility. If you would invest 101,500 in Mitra Pinasthika Mustika on September 2, 2024 and sell it today you would lose (2,500) from holding Mitra Pinasthika Mustika or give up 2.46% 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 Pinasthika Mustika
Performance |
| Timeline |
| Lippo Karawaci Tbk |
| Mitra Pinasthika Mustika |
Lippo Karawaci and Mitra Pinasthika Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lippo Karawaci and Mitra Pinasthika
The main advantage of trading using opposite Lippo Karawaci and Mitra Pinasthika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lippo Karawaci position performs unexpectedly, Mitra Pinasthika 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 Pinasthika will offset losses from the drop in Mitra Pinasthika'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 Pinasthika vs. Saratoga Investama Sedaya | Mitra Pinasthika vs. Puradelta Lestari PT | Mitra Pinasthika vs. Cikarang Listrindo Tbk | Mitra Pinasthika vs. Erajaya Swasembada 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |