Correlation Between Lenox Pasifik and Bank Jabar
Can any of the company-specific risk be diversified away by investing in both Lenox Pasifik and Bank Jabar 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 Jabar 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 Jabar, you can compare the effects of market volatilities on Lenox Pasifik and Bank Jabar 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 Jabar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lenox Pasifik and Bank Jabar.
Diversification Opportunities for Lenox Pasifik and Bank Jabar
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lenox and Bank is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Lenox Pasifik Investama and Bank Jabar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Jabar 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 Jabar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Jabar has no effect on the direction of Lenox Pasifik i.e., Lenox Pasifik and Bank Jabar go up and down completely randomly.
Pair Corralation between Lenox Pasifik and Bank Jabar
Assuming the 90 days trading horizon Lenox Pasifik Investama is expected to generate 10.35 times more return on investment than Bank Jabar. However, Lenox Pasifik is 10.35 times more volatile than Bank Jabar. It trades about 0.09 of its potential returns per unit of risk. Bank Jabar is currently generating about -0.15 per unit of risk. If you would invest 5,600 in Lenox Pasifik Investama on August 25, 2024 and sell it today you would earn a total of 1,100 from holding Lenox Pasifik Investama or generate 19.64% 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 Jabar
Performance |
| Timeline |
| Lenox Pasifik Investama |
| Bank Jabar |
Lenox Pasifik and Bank Jabar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lenox Pasifik and Bank Jabar
The main advantage of trading using opposite Lenox Pasifik and Bank Jabar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lenox Pasifik position performs unexpectedly, Bank Jabar 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 Jabar will offset losses from the drop in Bank Jabar'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 Jabar vs. Bank Pembangunan Timur | Bank Jabar vs. Bank Tabungan Negara | Bank Jabar vs. Bank Danamon Indonesia | Bank Jabar vs. Bumi Serpong Damai |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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