Correlation Between Lenox Pasifik and Wahana Ottomitra
Can any of the company-specific risk be diversified away by investing in both Lenox Pasifik and Wahana Ottomitra 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 Wahana Ottomitra 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 Wahana Ottomitra Multiartha, you can compare the effects of market volatilities on Lenox Pasifik and Wahana Ottomitra 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 Wahana Ottomitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lenox Pasifik and Wahana Ottomitra.
Diversification Opportunities for Lenox Pasifik and Wahana Ottomitra
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lenox and Wahana is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Lenox Pasifik Investama and Wahana Ottomitra Multiartha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wahana Ottomitra Mul 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 Wahana Ottomitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wahana Ottomitra Mul has no effect on the direction of Lenox Pasifik i.e., Lenox Pasifik and Wahana Ottomitra go up and down completely randomly.
Pair Corralation between Lenox Pasifik and Wahana Ottomitra
Assuming the 90 days trading horizon Lenox Pasifik Investama is expected to under-perform the Wahana Ottomitra. In addition to that, Lenox Pasifik is 4.94 times more volatile than Wahana Ottomitra Multiartha. It trades about -0.1 of its total potential returns per unit of risk. Wahana Ottomitra Multiartha is currently generating about -0.09 per unit of volatility. If you would invest 36,000 in Wahana Ottomitra Multiartha on August 24, 2024 and sell it today you would lose (1,000.00) from holding Wahana Ottomitra Multiartha or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lenox Pasifik Investama vs. Wahana Ottomitra Multiartha
Performance |
| Timeline |
| Lenox Pasifik Investama |
| Wahana Ottomitra Mul |
Lenox Pasifik and Wahana Ottomitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lenox Pasifik and Wahana Ottomitra
The main advantage of trading using opposite Lenox Pasifik and Wahana Ottomitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lenox Pasifik position performs unexpectedly, Wahana Ottomitra 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 Wahana Ottomitra will offset losses from the drop in Wahana Ottomitra's long position.| Lenox Pasifik vs. Paninvest Tbk | Lenox Pasifik vs. Maskapai Reasuransi Indonesia | Lenox Pasifik vs. Panin Sekuritas Tbk | Lenox Pasifik vs. Wahana Ottomitra Multiartha |
| Wahana Ottomitra vs. Paninvest Tbk | Wahana Ottomitra vs. Maskapai Reasuransi Indonesia | Wahana Ottomitra vs. Panin Sekuritas Tbk | Wahana Ottomitra 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |