Correlation Between Sri Rejeki and Lion Metal
Can any of the company-specific risk be diversified away by investing in both Sri Rejeki and Lion Metal 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 Sri Rejeki and Lion Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sri Rejeki IsmanPT and Lion Metal Works, you can compare the effects of market volatilities on Sri Rejeki and Lion Metal 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 Sri Rejeki with a short position of Lion Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sri Rejeki and Lion Metal.
Diversification Opportunities for Sri Rejeki and Lion Metal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sri and Lion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sri Rejeki IsmanPT and Lion Metal Works in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion Metal Works and Sri Rejeki 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 Sri Rejeki IsmanPT are associated (or correlated) with Lion Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion Metal Works has no effect on the direction of Sri Rejeki i.e., Sri Rejeki and Lion Metal go up and down completely randomly.
Pair Corralation between Sri Rejeki and Lion Metal
If you would invest 14,600 in Sri Rejeki IsmanPT on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Sri Rejeki IsmanPT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Sri Rejeki IsmanPT vs. Lion Metal Works
Performance |
| Timeline |
| Sri Rejeki IsmanPT |
| Lion Metal Works |
Sri Rejeki and Lion Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sri Rejeki and Lion Metal
The main advantage of trading using opposite Sri Rejeki and Lion Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sri Rejeki position performs unexpectedly, Lion Metal 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 Lion Metal will offset losses from the drop in Lion Metal's long position.| Sri Rejeki vs. Visi Media Asia | Sri Rejeki vs. Hotel Sahid Jaya | Sri Rejeki vs. Hero Supermarket Tbk | Sri Rejeki vs. Indofood Cbp Sukses |
| Lion Metal vs. Intanwijaya Internasional Tbk | Lion Metal vs. Champion Pacific Indonesia | Lion Metal vs. Mitra Pinasthika Mustika | Lion Metal vs. Jakarta Int Hotels |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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