Correlation Between Pollux Properti and Lancartama Sejati
Can any of the company-specific risk be diversified away by investing in both Pollux Properti and Lancartama Sejati 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 Pollux Properti and Lancartama Sejati into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pollux Properti Indonesia and Lancartama Sejati Tbk, you can compare the effects of market volatilities on Pollux Properti and Lancartama Sejati 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 Pollux Properti with a short position of Lancartama Sejati. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pollux Properti and Lancartama Sejati.
Diversification Opportunities for Pollux Properti and Lancartama Sejati
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pollux and Lancartama is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pollux Properti Indonesia and Lancartama Sejati Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lancartama Sejati Tbk and Pollux Properti 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 Pollux Properti Indonesia are associated (or correlated) with Lancartama Sejati. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lancartama Sejati Tbk has no effect on the direction of Pollux Properti i.e., Pollux Properti and Lancartama Sejati go up and down completely randomly.
Pair Corralation between Pollux Properti and Lancartama Sejati
Assuming the 90 days trading horizon Pollux Properti Indonesia is expected to generate 0.4 times more return on investment than Lancartama Sejati. However, Pollux Properti Indonesia is 2.47 times less risky than Lancartama Sejati. It trades about -0.07 of its potential returns per unit of risk. Lancartama Sejati Tbk is currently generating about -0.03 per unit of risk. If you would invest 19,000 in Pollux Properti Indonesia on September 12, 2024 and sell it today you would lose (7,800) from holding Pollux Properti Indonesia or give up 41.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.68% |
| Values | Daily Returns |
Pollux Properti Indonesia vs. Lancartama Sejati Tbk
Performance |
| Timeline |
| Pollux Properti Indonesia |
| Lancartama Sejati Tbk |
Pollux Properti and Lancartama Sejati Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pollux Properti and Lancartama Sejati
The main advantage of trading using opposite Pollux Properti and Lancartama Sejati positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pollux Properti position performs unexpectedly, Lancartama Sejati 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 Lancartama Sejati will offset losses from the drop in Lancartama Sejati's long position.| Pollux Properti vs. Ciputra Development Tbk | Pollux Properti vs. Bumi Serpong Damai | Pollux Properti vs. Alam Sutera Realty | Pollux Properti vs. Lippo Karawaci Tbk |
| Lancartama Sejati vs. Perintis Triniti Properti | Lancartama Sejati vs. Diamond Citra Propertindo | Lancartama Sejati vs. Karya Bersama Anugerah | Lancartama Sejati vs. Pratama Widya 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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