Correlation Between Bank Mayapada and Lippo General
Can any of the company-specific risk be diversified away by investing in both Bank Mayapada and Lippo General 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 Bank Mayapada and Lippo General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Mayapada Internasional and Lippo General Insurance, you can compare the effects of market volatilities on Bank Mayapada and Lippo General 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 Bank Mayapada with a short position of Lippo General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mayapada and Lippo General.
Diversification Opportunities for Bank Mayapada and Lippo General
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Lippo is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mayapada Internasional and Lippo General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lippo General Insurance and Bank Mayapada 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 Bank Mayapada Internasional are associated (or correlated) with Lippo General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lippo General Insurance has no effect on the direction of Bank Mayapada i.e., Bank Mayapada and Lippo General go up and down completely randomly.
Pair Corralation between Bank Mayapada and Lippo General
Assuming the 90 days trading horizon Bank Mayapada Internasional is expected to generate 5.58 times more return on investment than Lippo General. However, Bank Mayapada is 5.58 times more volatile than Lippo General Insurance. It trades about 0.07 of its potential returns per unit of risk. Lippo General Insurance is currently generating about 0.15 per unit of risk. If you would invest 22,200 in Bank Mayapada Internasional on August 29, 2024 and sell it today you would earn a total of 1,400 from holding Bank Mayapada Internasional or generate 6.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mayapada Internasional vs. Lippo General Insurance
Performance |
| Timeline |
| Bank Mayapada Intern |
| Lippo General Insurance |
Bank Mayapada and Lippo General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mayapada and Lippo General
The main advantage of trading using opposite Bank Mayapada and Lippo General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mayapada position performs unexpectedly, Lippo General 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 Lippo General will offset losses from the drop in Lippo General's long position.| Bank Mayapada vs. Bank Mega Tbk | Bank Mayapada vs. Bank Ocbc Nisp | Bank Mayapada vs. Bank Windu Kentjana | Bank Mayapada vs. Bank Artha Graha |
| Lippo General vs. Maskapai Reasuransi Indonesia | Lippo General vs. Lenox Pasifik Investama | Lippo General vs. Paninvest Tbk | Lippo General vs. Bank Mayapada Internasional |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| 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 |