Correlation Between Indosterling Technomedia and Lippo General
Can any of the company-specific risk be diversified away by investing in both Indosterling Technomedia and Lippo General 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 Indosterling Technomedia and Lippo General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indosterling Technomedia Tbk and Lippo General Insurance, you can compare the effects of market volatilities on Indosterling Technomedia and Lippo General 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 Indosterling Technomedia with a short position of Lippo General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosterling Technomedia and Lippo General.
Diversification Opportunities for Indosterling Technomedia and Lippo General
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indosterling and Lippo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indosterling Technomedia Tbk and Lippo General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lippo General Insurance and Indosterling Technomedia 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 Indosterling Technomedia Tbk are associated (or correlated) with Lippo General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lippo General Insurance has no effect on the direction of Indosterling Technomedia i.e., Indosterling Technomedia and Lippo General go up and down completely randomly.
Pair Corralation between Indosterling Technomedia and Lippo General
If you would invest 34,100 in Lippo General Insurance on August 25, 2024 and sell it today you would earn a total of 2,300 from holding Lippo General Insurance or generate 6.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Indosterling Technomedia Tbk vs. Lippo General Insurance
Performance |
| Timeline |
| Indosterling Technomedia |
| Lippo General Insurance |
Indosterling Technomedia and Lippo General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosterling Technomedia and Lippo General
The main advantage of trading using opposite Indosterling Technomedia and Lippo General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosterling Technomedia position performs unexpectedly, Lippo General 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 General will offset losses from the drop in Lippo General's long position.| Indosterling Technomedia vs. Multipolar Technology Tbk | Indosterling Technomedia vs. Digital Mediatama Maxima | Indosterling Technomedia vs. M Cash Integrasi | Indosterling Technomedia vs. NFC Indonesia PT |
| Lippo General vs. Maskapai Reasuransi Indonesia | Lippo General vs. Lenox Pasifik Investama | Lippo General vs. Paninvest Tbk | Lippo General vs. Bank Mayapada Internasional |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |