Correlation Between Lenox Pasifik and Victoria Investama
Can any of the company-specific risk be diversified away by investing in both Lenox Pasifik and Victoria Investama 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 Victoria Investama 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 Victoria Investama Tbk, you can compare the effects of market volatilities on Lenox Pasifik and Victoria Investama 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 Victoria Investama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lenox Pasifik and Victoria Investama.
Diversification Opportunities for Lenox Pasifik and Victoria Investama
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lenox and Victoria is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Lenox Pasifik Investama and Victoria Investama Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victoria Investama 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 Victoria Investama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victoria Investama Tbk has no effect on the direction of Lenox Pasifik i.e., Lenox Pasifik and Victoria Investama go up and down completely randomly.
Pair Corralation between Lenox Pasifik and Victoria Investama
Assuming the 90 days trading horizon Lenox Pasifik is expected to generate 6.6 times less return on investment than Victoria Investama. In addition to that, Lenox Pasifik is 1.01 times more volatile than Victoria Investama Tbk. It trades about 0.01 of its total potential returns per unit of risk. Victoria Investama Tbk is currently generating about 0.09 per unit of volatility. If you would invest 11,800 in Victoria Investama Tbk on August 26, 2024 and sell it today you would earn a total of 10,800 from holding Victoria Investama Tbk or generate 91.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lenox Pasifik Investama vs. Victoria Investama Tbk
Performance |
| Timeline |
| Lenox Pasifik Investama |
| Victoria Investama Tbk |
Lenox Pasifik and Victoria Investama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lenox Pasifik and Victoria Investama
The main advantage of trading using opposite Lenox Pasifik and Victoria Investama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lenox Pasifik position performs unexpectedly, Victoria Investama 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 Victoria Investama will offset losses from the drop in Victoria Investama's long position.| Lenox Pasifik vs. Paninvest Tbk | Lenox Pasifik vs. Panin Sekuritas Tbk | Lenox Pasifik vs. Wahana Ottomitra Multiartha |
| Victoria Investama vs. Paninvest Tbk | Victoria Investama vs. Panin Sekuritas Tbk | Victoria Investama vs. Wahana Ottomitra Multiartha | Victoria Investama vs. Lenox Pasifik Investama |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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