Correlation Between Charnic Capital and Lippo Karawaci
Can any of the company-specific risk be diversified away by investing in both Charnic Capital and Lippo Karawaci 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 Charnic Capital and Lippo Karawaci into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Charnic Capital Tbk and Lippo Karawaci Tbk, you can compare the effects of market volatilities on Charnic Capital and Lippo Karawaci 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 Charnic Capital with a short position of Lippo Karawaci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charnic Capital and Lippo Karawaci.
Diversification Opportunities for Charnic Capital and Lippo Karawaci
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Charnic and Lippo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Charnic Capital Tbk and Lippo Karawaci Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lippo Karawaci Tbk and Charnic Capital 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 Charnic Capital Tbk are associated (or correlated) with Lippo Karawaci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lippo Karawaci Tbk has no effect on the direction of Charnic Capital i.e., Charnic Capital and Lippo Karawaci go up and down completely randomly.
Pair Corralation between Charnic Capital and Lippo Karawaci
If you would invest 8,300 in Lippo Karawaci Tbk on September 3, 2024 and sell it today you would earn a total of 2,400 from holding Lippo Karawaci Tbk or generate 28.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.21% |
| Values | Daily Returns |
Charnic Capital Tbk vs. Lippo Karawaci Tbk
Performance |
| Timeline |
| Charnic Capital Tbk |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Lippo Karawaci Tbk |
Charnic Capital and Lippo Karawaci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Charnic Capital and Lippo Karawaci
The main advantage of trading using opposite Charnic Capital and Lippo Karawaci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charnic Capital position performs unexpectedly, Lippo Karawaci 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 Karawaci will offset losses from the drop in Lippo Karawaci's long position.| Charnic Capital vs. Royal Prima PT | Charnic Capital vs. PT Surya Pertiwi | Charnic Capital vs. MNC Studios International | Charnic Capital vs. NFC Indonesia PT |
| Lippo Karawaci vs. Bumi Serpong Damai | Lippo Karawaci vs. Alam Sutera Realty | Lippo Karawaci vs. Summarecon Agung Tbk | Lippo Karawaci vs. Ciputra Development 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| 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 | |
| Positions Ratings 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 | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |