Correlation Between Lenox Pasifik and Bank Artos
Can any of the company-specific risk be diversified away by investing in both Lenox Pasifik and Bank Artos 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 Lenox Pasifik and Bank Artos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lenox Pasifik Investama and Bank Artos Indonesia, you can compare the effects of market volatilities on Lenox Pasifik and Bank Artos 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 Lenox Pasifik with a short position of Bank Artos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lenox Pasifik and Bank Artos.
Diversification Opportunities for Lenox Pasifik and Bank Artos
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lenox and Bank is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Lenox Pasifik Investama and Bank Artos Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Artos Indonesia and Lenox Pasifik 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 Lenox Pasifik Investama are associated (or correlated) with Bank Artos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Artos Indonesia has no effect on the direction of Lenox Pasifik i.e., Lenox Pasifik and Bank Artos go up and down completely randomly.
Pair Corralation between Lenox Pasifik and Bank Artos
Assuming the 90 days trading horizon Lenox Pasifik Investama is expected to generate 0.92 times more return on investment than Bank Artos. However, Lenox Pasifik Investama is 1.09 times less risky than Bank Artos. It trades about 0.02 of its potential returns per unit of risk. Bank Artos Indonesia is currently generating about 0.01 per unit of risk. If you would invest 6,500 in Lenox Pasifik Investama on August 31, 2024 and sell it today you would earn a total of 100.00 from holding Lenox Pasifik Investama or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lenox Pasifik Investama vs. Bank Artos Indonesia
Performance |
| Timeline |
| Lenox Pasifik Investama |
| Bank Artos Indonesia |
Lenox Pasifik and Bank Artos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lenox Pasifik and Bank Artos
The main advantage of trading using opposite Lenox Pasifik and Bank Artos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lenox Pasifik position performs unexpectedly, Bank Artos 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 Bank Artos will offset losses from the drop in Bank Artos' long position.| Lenox Pasifik vs. Star Pacific Tbk | Lenox Pasifik vs. Multipolar Tbk | Lenox Pasifik vs. Lippo General Insurance | Lenox Pasifik vs. Paninvest Tbk |
| Bank Artos vs. Elang Mahkota Teknologi | Bank Artos vs. Bank Yudha Bhakti | Bank Artos vs. Bk Harda Internasional | Bank Artos vs. PT Bukalapak |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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