Correlation Between Bank Mayapada and Lenox Pasifik
Can any of the company-specific risk be diversified away by investing in both Bank Mayapada and Lenox Pasifik 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 Lenox Pasifik 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 Lenox Pasifik Investama, you can compare the effects of market volatilities on Bank Mayapada and Lenox Pasifik 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 Lenox Pasifik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mayapada and Lenox Pasifik.
Diversification Opportunities for Bank Mayapada and Lenox Pasifik
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Lenox is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mayapada Internasional and Lenox Pasifik Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lenox Pasifik Investama 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 Lenox Pasifik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lenox Pasifik Investama has no effect on the direction of Bank Mayapada i.e., Bank Mayapada and Lenox Pasifik go up and down completely randomly.
Pair Corralation between Bank Mayapada and Lenox Pasifik
Assuming the 90 days trading horizon Bank Mayapada Internasional is expected to generate 1.28 times more return on investment than Lenox Pasifik. However, Bank Mayapada is 1.28 times more volatile than Lenox Pasifik Investama. It trades about 0.07 of its potential returns per unit of risk. Lenox Pasifik Investama 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mayapada Internasional vs. Lenox Pasifik Investama
Performance |
| Timeline |
| Bank Mayapada Intern |
| Lenox Pasifik Investama |
Bank Mayapada and Lenox Pasifik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mayapada and Lenox Pasifik
The main advantage of trading using opposite Bank Mayapada and Lenox Pasifik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mayapada position performs unexpectedly, Lenox Pasifik 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 Lenox Pasifik will offset losses from the drop in Lenox Pasifik'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 |
| Lenox Pasifik vs. Star Pacific Tbk | Lenox Pasifik vs. Multipolar Tbk | Lenox Pasifik vs. Lippo General Insurance | Lenox Pasifik vs. Paninvest 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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