Correlation Between Lenox Pasifik and OBSERVE MEDICAL
Can any of the company-specific risk be diversified away by investing in both Lenox Pasifik and OBSERVE MEDICAL 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 OBSERVE MEDICAL 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 OBSERVE MEDICAL ASA, you can compare the effects of market volatilities on Lenox Pasifik and OBSERVE MEDICAL 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 OBSERVE MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lenox Pasifik and OBSERVE MEDICAL.
Diversification Opportunities for Lenox Pasifik and OBSERVE MEDICAL
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lenox and OBSERVE is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Lenox Pasifik Investama and OBSERVE MEDICAL ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OBSERVE MEDICAL ASA 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 OBSERVE MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OBSERVE MEDICAL ASA has no effect on the direction of Lenox Pasifik i.e., Lenox Pasifik and OBSERVE MEDICAL go up and down completely randomly.
Pair Corralation between Lenox Pasifik and OBSERVE MEDICAL
If you would invest 41.00 in OBSERVE MEDICAL ASA on October 25, 2024 and sell it today you would earn a total of 2.00 from holding OBSERVE MEDICAL ASA or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 88.89% |
| Values | Daily Returns |
Lenox Pasifik Investama vs. OBSERVE MEDICAL ASA
Performance |
| Timeline |
| Lenox Pasifik Investama |
| OBSERVE MEDICAL ASA |
Lenox Pasifik and OBSERVE MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lenox Pasifik and OBSERVE MEDICAL
The main advantage of trading using opposite Lenox Pasifik and OBSERVE MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lenox Pasifik position performs unexpectedly, OBSERVE MEDICAL 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 OBSERVE MEDICAL will offset losses from the drop in OBSERVE MEDICAL's long position.| Lenox Pasifik vs. Tower Semiconductor | Lenox Pasifik vs. ELMOS SEMICONDUCTOR | Lenox Pasifik vs. Meli Hotels International | Lenox Pasifik vs. Pebblebrook Hotel Trust |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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