Correlation Between Lima Dua and Imago Mulia
Can any of the company-specific risk be diversified away by investing in both Lima Dua and Imago Mulia 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 Lima Dua and Imago Mulia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lima Dua Lima and Imago Mulia Persada, you can compare the effects of market volatilities on Lima Dua and Imago Mulia 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 Lima Dua with a short position of Imago Mulia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lima Dua and Imago Mulia.
Diversification Opportunities for Lima Dua and Imago Mulia
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lima and Imago is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Lima Dua Lima and Imago Mulia Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imago Mulia Persada and Lima Dua 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 Lima Dua Lima are associated (or correlated) with Imago Mulia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imago Mulia Persada has no effect on the direction of Lima Dua i.e., Lima Dua and Imago Mulia go up and down completely randomly.
Pair Corralation between Lima Dua and Imago Mulia
Assuming the 90 days trading horizon Lima Dua Lima is expected to under-perform the Imago Mulia. But the stock apears to be less risky and, when comparing its historical volatility, Lima Dua Lima is 2.05 times less risky than Imago Mulia. The stock trades about 0.0 of its potential returns per unit of risk. The Imago Mulia Persada is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4,800 in Imago Mulia Persada on September 2, 2024 and sell it today you would earn a total of 3,500 from holding Imago Mulia Persada or generate 72.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lima Dua Lima vs. Imago Mulia Persada
Performance |
| Timeline |
| Lima Dua Lima |
| Imago Mulia Persada |
Lima Dua and Imago Mulia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lima Dua and Imago Mulia
The main advantage of trading using opposite Lima Dua and Imago Mulia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lima Dua position performs unexpectedly, Imago Mulia 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 Imago Mulia will offset losses from the drop in Imago Mulia's long position.| Lima Dua vs. Jayamas Medica Industri | Lima Dua vs. Citra Borneo Utama | Lima Dua vs. Integra Indocabinet Tbk | Lima Dua vs. Multistrada Arah Sarana |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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