Correlation Between Lancartama Sejati and Perintis Triniti
Can any of the company-specific risk be diversified away by investing in both Lancartama Sejati and Perintis Triniti 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 Lancartama Sejati and Perintis Triniti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lancartama Sejati Tbk and Perintis Triniti Properti, you can compare the effects of market volatilities on Lancartama Sejati and Perintis Triniti 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 Lancartama Sejati with a short position of Perintis Triniti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lancartama Sejati and Perintis Triniti.
Diversification Opportunities for Lancartama Sejati and Perintis Triniti
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lancartama and Perintis is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Lancartama Sejati Tbk and Perintis Triniti Properti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perintis Triniti Properti and Lancartama Sejati 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 Lancartama Sejati Tbk are associated (or correlated) with Perintis Triniti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perintis Triniti Properti has no effect on the direction of Lancartama Sejati i.e., Lancartama Sejati and Perintis Triniti go up and down completely randomly.
Pair Corralation between Lancartama Sejati and Perintis Triniti
Assuming the 90 days trading horizon Lancartama Sejati Tbk is expected to under-perform the Perintis Triniti. In addition to that, Lancartama Sejati is 2.04 times more volatile than Perintis Triniti Properti. It trades about -0.06 of its total potential returns per unit of risk. Perintis Triniti Properti is currently generating about -0.07 per unit of volatility. If you would invest 13,000 in Perintis Triniti Properti on September 2, 2024 and sell it today you would lose (400.00) from holding Perintis Triniti Properti or give up 3.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lancartama Sejati Tbk vs. Perintis Triniti Properti
Performance |
| Timeline |
| Lancartama Sejati Tbk |
| Perintis Triniti Properti |
Lancartama Sejati and Perintis Triniti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lancartama Sejati and Perintis Triniti
The main advantage of trading using opposite Lancartama Sejati and Perintis Triniti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lancartama Sejati position performs unexpectedly, Perintis Triniti 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 Perintis Triniti will offset losses from the drop in Perintis Triniti's long position.| Lancartama Sejati vs. Perintis Triniti Properti | Lancartama Sejati vs. Diamond Citra Propertindo | Lancartama Sejati vs. Karya Bersama Anugerah | Lancartama Sejati vs. Pratama Widya Tbk |
| Perintis Triniti vs. Bima Sakti Pertiwi | Perintis Triniti vs. DMS Propertindo Tbk | Perintis Triniti vs. Repower Asia Indonesia | Perintis Triniti vs. Pollux Properti Indonesia |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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