Correlation Between Lenox Pasifik and Bilfinger
Can any of the company-specific risk be diversified away by investing in both Lenox Pasifik and Bilfinger 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 Bilfinger 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 Bilfinger SE, you can compare the effects of market volatilities on Lenox Pasifik and Bilfinger 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 Bilfinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lenox Pasifik and Bilfinger.
Diversification Opportunities for Lenox Pasifik and Bilfinger
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lenox and Bilfinger is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Lenox Pasifik Investama and Bilfinger SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilfinger SE 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 Bilfinger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bilfinger SE has no effect on the direction of Lenox Pasifik i.e., Lenox Pasifik and Bilfinger go up and down completely randomly.
Pair Corralation between Lenox Pasifik and Bilfinger
Assuming the 90 days trading horizon Lenox Pasifik Investama is expected to generate 19.73 times more return on investment than Bilfinger. However, Lenox Pasifik is 19.73 times more volatile than Bilfinger SE. It trades about 0.07 of its potential returns per unit of risk. Bilfinger SE is currently generating about 0.08 per unit of risk. If you would invest 0.05 in Lenox Pasifik Investama on September 13, 2024 and sell it today you would earn a total of 0.20 from holding Lenox Pasifik Investama or generate 400.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Lenox Pasifik Investama vs. Bilfinger SE
Performance |
| Timeline |
| Lenox Pasifik Investama |
| Bilfinger SE |
Lenox Pasifik and Bilfinger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lenox Pasifik and Bilfinger
The main advantage of trading using opposite Lenox Pasifik and Bilfinger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lenox Pasifik position performs unexpectedly, Bilfinger 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 Bilfinger will offset losses from the drop in Bilfinger's long position.| Lenox Pasifik vs. ITALIAN WINE BRANDS | Lenox Pasifik vs. DELTA AIR LINES | Lenox Pasifik vs. Corsair Gaming | Lenox Pasifik vs. Treasury Wine Estates |
| Bilfinger vs. Sumitomo Rubber Industries | Bilfinger vs. Summit Materials | Bilfinger vs. Eagle Materials | Bilfinger vs. Mitsubishi Materials |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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