Correlation Between PT Lippo and SQI Diagnostics
Can any of the company-specific risk be diversified away by investing in both PT Lippo and SQI Diagnostics 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 PT Lippo and SQI Diagnostics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Lippo Karawaci and SQI Diagnostics, you can compare the effects of market volatilities on PT Lippo and SQI Diagnostics 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 PT Lippo with a short position of SQI Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Lippo and SQI Diagnostics.
Diversification Opportunities for PT Lippo and SQI Diagnostics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PTLKF and SQI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Lippo Karawaci and SQI Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SQI Diagnostics and PT Lippo 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 PT Lippo Karawaci are associated (or correlated) with SQI Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SQI Diagnostics has no effect on the direction of PT Lippo i.e., PT Lippo and SQI Diagnostics go up and down completely randomly.
Pair Corralation between PT Lippo and SQI Diagnostics
If you would invest 0.90 in PT Lippo Karawaci on November 2, 2024 and sell it today you would earn a total of 0.10 from holding PT Lippo Karawaci or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
PT Lippo Karawaci vs. SQI Diagnostics
Performance |
| Timeline |
| PT Lippo Karawaci |
| SQI Diagnostics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Lippo and SQI Diagnostics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Lippo and SQI Diagnostics
The main advantage of trading using opposite PT Lippo and SQI Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Lippo position performs unexpectedly, SQI Diagnostics 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 SQI Diagnostics will offset losses from the drop in SQI Diagnostics' long position.| PT Lippo vs. TFI International | PT Lippo vs. Coty Inc | PT Lippo vs. Academy Sports Outdoors | PT Lippo vs. Sea |
| SQI Diagnostics vs. BioMark Diagnostics | SQI Diagnostics vs. Avricore Health | SQI Diagnostics vs. DarioHealth Corp | SQI Diagnostics vs. ProPhase Labs |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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