Correlation Between Lenox Pasifik and Maskapai Reasuransi
Can any of the company-specific risk be diversified away by investing in both Lenox Pasifik and Maskapai Reasuransi 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 Maskapai Reasuransi 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 Maskapai Reasuransi Indonesia, you can compare the effects of market volatilities on Lenox Pasifik and Maskapai Reasuransi 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 Maskapai Reasuransi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lenox Pasifik and Maskapai Reasuransi.
Diversification Opportunities for Lenox Pasifik and Maskapai Reasuransi
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lenox and Maskapai is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Lenox Pasifik Investama and Maskapai Reasuransi Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maskapai Reasuransi 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 Maskapai Reasuransi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maskapai Reasuransi has no effect on the direction of Lenox Pasifik i.e., Lenox Pasifik and Maskapai Reasuransi go up and down completely randomly.
Pair Corralation between Lenox Pasifik and Maskapai Reasuransi
Assuming the 90 days trading horizon Lenox Pasifik Investama is expected to under-perform the Maskapai Reasuransi. In addition to that, Lenox Pasifik is 7.01 times more volatile than Maskapai Reasuransi Indonesia. It trades about -0.15 of its total potential returns per unit of risk. Maskapai Reasuransi Indonesia is currently generating about -0.1 per unit of volatility. If you would invest 100,000 in Maskapai Reasuransi Indonesia on August 28, 2024 and sell it today you would lose (2,000) from holding Maskapai Reasuransi Indonesia or give up 2.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lenox Pasifik Investama vs. Maskapai Reasuransi Indonesia
Performance |
| Timeline |
| Lenox Pasifik Investama |
| Maskapai Reasuransi |
Lenox Pasifik and Maskapai Reasuransi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lenox Pasifik and Maskapai Reasuransi
The main advantage of trading using opposite Lenox Pasifik and Maskapai Reasuransi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lenox Pasifik position performs unexpectedly, Maskapai Reasuransi 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 Maskapai Reasuransi will offset losses from the drop in Maskapai Reasuransi'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 |
| Maskapai Reasuransi vs. Lippo General Insurance | Maskapai Reasuransi vs. Paninvest Tbk | Maskapai Reasuransi vs. Mandala Multifinance Tbk | Maskapai Reasuransi vs. Bank Mayapada 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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