Correlation Between Lautan Luas and Star Pacific
Can any of the company-specific risk be diversified away by investing in both Lautan Luas and Star Pacific 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 Lautan Luas and Star Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lautan Luas Tbk and Star Pacific Tbk, you can compare the effects of market volatilities on Lautan Luas and Star Pacific 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 Lautan Luas with a short position of Star Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lautan Luas and Star Pacific.
Diversification Opportunities for Lautan Luas and Star Pacific
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lautan and Star is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lautan Luas Tbk and Star Pacific Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Pacific Tbk and Lautan Luas 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 Lautan Luas Tbk are associated (or correlated) with Star Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Pacific Tbk has no effect on the direction of Lautan Luas i.e., Lautan Luas and Star Pacific go up and down completely randomly.
Pair Corralation between Lautan Luas and Star Pacific
If you would invest (100.00) in Star Pacific Tbk on August 30, 2024 and sell it today you would earn a total of 100.00 from holding Star Pacific Tbk or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lautan Luas Tbk vs. Star Pacific Tbk
Performance |
| Timeline |
| Lautan Luas Tbk |
| Star Pacific Tbk |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lautan Luas and Star Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lautan Luas and Star Pacific
The main advantage of trading using opposite Lautan Luas and Star Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lautan Luas position performs unexpectedly, Star Pacific 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 Star Pacific will offset losses from the drop in Star Pacific's long position.| Lautan Luas vs. Yelooo Integra Datanet | Lautan Luas vs. Indosterling Technomedia Tbk | Lautan Luas vs. Global Mediacom Tbk | Lautan Luas vs. Intermedia Capital Tbk |
| Star Pacific vs. Multipolar Tbk | Star Pacific vs. Lautan Luas Tbk | Star Pacific vs. Metrodata Electronics Tbk | Star Pacific vs. Multi Indocitra Tbk |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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