Correlation Between Lenox Pasifik and Summarecon Agung
Can any of the company-specific risk be diversified away by investing in both Lenox Pasifik and Summarecon Agung 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 Summarecon Agung 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 Summarecon Agung Tbk, you can compare the effects of market volatilities on Lenox Pasifik and Summarecon Agung 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 Summarecon Agung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lenox Pasifik and Summarecon Agung.
Diversification Opportunities for Lenox Pasifik and Summarecon Agung
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lenox and Summarecon is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Lenox Pasifik Investama and Summarecon Agung Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summarecon Agung Tbk 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 Summarecon Agung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summarecon Agung Tbk has no effect on the direction of Lenox Pasifik i.e., Lenox Pasifik and Summarecon Agung go up and down completely randomly.
Pair Corralation between Lenox Pasifik and Summarecon Agung
Assuming the 90 days trading horizon Lenox Pasifik Investama is expected to generate 1.99 times more return on investment than Summarecon Agung. However, Lenox Pasifik is 1.99 times more volatile than Summarecon Agung Tbk. It trades about 0.05 of its potential returns per unit of risk. Summarecon Agung Tbk is currently generating about 0.05 per unit of risk. If you would invest 5,800 in Lenox Pasifik Investama on August 28, 2024 and sell it today you would earn a total of 900.00 from holding Lenox Pasifik Investama or generate 15.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Lenox Pasifik Investama vs. Summarecon Agung Tbk
Performance |
| Timeline |
| Lenox Pasifik Investama |
| Summarecon Agung Tbk |
Lenox Pasifik and Summarecon Agung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lenox Pasifik and Summarecon Agung
The main advantage of trading using opposite Lenox Pasifik and Summarecon Agung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lenox Pasifik position performs unexpectedly, Summarecon Agung 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 Summarecon Agung will offset losses from the drop in Summarecon Agung'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 |
| Summarecon Agung vs. Ciputra Development Tbk | Summarecon Agung vs. Bumi Serpong Damai | Summarecon Agung vs. Alam Sutera Realty | Summarecon Agung vs. Lippo Karawaci 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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