Correlation Between Lenox Pasifik and Ring Energy
Can any of the company-specific risk be diversified away by investing in both Lenox Pasifik and Ring Energy 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 Ring Energy 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 Ring Energy, you can compare the effects of market volatilities on Lenox Pasifik and Ring Energy 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 Ring Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lenox Pasifik and Ring Energy.
Diversification Opportunities for Lenox Pasifik and Ring Energy
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lenox and Ring is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Lenox Pasifik Investama and Ring Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ring Energy 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 Ring Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ring Energy has no effect on the direction of Lenox Pasifik i.e., Lenox Pasifik and Ring Energy go up and down completely randomly.
Pair Corralation between Lenox Pasifik and Ring Energy
Assuming the 90 days trading horizon Lenox Pasifik Investama is expected to under-perform the Ring Energy. In addition to that, Lenox Pasifik is 2.49 times more volatile than Ring Energy. It trades about -0.18 of its total potential returns per unit of risk. Ring Energy is currently generating about 0.08 per unit of volatility. If you would invest 136.00 in Ring Energy on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Ring Energy or generate 5.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lenox Pasifik Investama vs. Ring Energy
Performance |
| Timeline |
| Lenox Pasifik Investama |
| Ring Energy |
Lenox Pasifik and Ring Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lenox Pasifik and Ring Energy
The main advantage of trading using opposite Lenox Pasifik and Ring Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lenox Pasifik position performs unexpectedly, Ring Energy 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 Ring Energy will offset losses from the drop in Ring Energy's long position.| Lenox Pasifik vs. Ming Le Sports | Lenox Pasifik vs. Hitachi Construction Machinery | Lenox Pasifik vs. SCIENCE IN SPORT | Lenox Pasifik vs. Air Transport Services |
| Ring Energy vs. Performance Food Group | Ring Energy vs. HF FOODS GRP | Ring Energy vs. SINGAPORE AIRLINES | Ring Energy vs. Nok Airlines PCL |
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.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |