Correlation Between Lenox Pasifik and Bank Yudha
Can any of the company-specific risk be diversified away by investing in both Lenox Pasifik and Bank Yudha 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 Yudha 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 Yudha Bhakti, you can compare the effects of market volatilities on Lenox Pasifik and Bank Yudha 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 Yudha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lenox Pasifik and Bank Yudha.
Diversification Opportunities for Lenox Pasifik and Bank Yudha
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lenox and Bank is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Lenox Pasifik Investama and Bank Yudha Bhakti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Yudha Bhakti 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 Yudha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Yudha Bhakti has no effect on the direction of Lenox Pasifik i.e., Lenox Pasifik and Bank Yudha go up and down completely randomly.
Pair Corralation between Lenox Pasifik and Bank Yudha
Assuming the 90 days trading horizon Lenox Pasifik Investama is expected to generate 0.78 times more return on investment than Bank Yudha. However, Lenox Pasifik Investama is 1.29 times less risky than Bank Yudha. It trades about 0.01 of its potential returns per unit of risk. Bank Yudha Bhakti is currently generating about -0.02 per unit of risk. If you would invest 6,900 in Lenox Pasifik Investama on August 29, 2024 and sell it today you would lose (200.00) from holding Lenox Pasifik Investama or give up 2.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Lenox Pasifik Investama vs. Bank Yudha Bhakti
Performance |
| Timeline |
| Lenox Pasifik Investama |
| Bank Yudha Bhakti |
Lenox Pasifik and Bank Yudha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lenox Pasifik and Bank Yudha
The main advantage of trading using opposite Lenox Pasifik and Bank Yudha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lenox Pasifik position performs unexpectedly, Bank Yudha 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 Yudha will offset losses from the drop in Bank Yudha's 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 Yudha vs. Bank Artos Indonesia | Bank Yudha vs. Bk Harda Internasional | Bank Yudha vs. Bank Rakyat Indonesia | Bank Yudha vs. Bank Mnc Internasional |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |