Correlation Between Indosterling Technomedia and Lippo Karawaci
Can any of the company-specific risk be diversified away by investing in both Indosterling Technomedia and Lippo Karawaci 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 Karawaci 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 Karawaci Tbk, you can compare the effects of market volatilities on Indosterling Technomedia and Lippo Karawaci 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 Karawaci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosterling Technomedia and Lippo Karawaci.
Diversification Opportunities for Indosterling Technomedia and Lippo Karawaci
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 Karawaci Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lippo Karawaci Tbk 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 Karawaci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lippo Karawaci Tbk has no effect on the direction of Indosterling Technomedia i.e., Indosterling Technomedia and Lippo Karawaci go up and down completely randomly.
Pair Corralation between Indosterling Technomedia and Lippo Karawaci
If you would invest 5,000 in Indosterling Technomedia Tbk on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Indosterling Technomedia Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Indosterling Technomedia Tbk vs. Lippo Karawaci Tbk
Performance |
| Timeline |
| Indosterling Technomedia |
| Lippo Karawaci Tbk |
Indosterling Technomedia and Lippo Karawaci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosterling Technomedia and Lippo Karawaci
The main advantage of trading using opposite Indosterling Technomedia and Lippo Karawaci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosterling Technomedia position performs unexpectedly, Lippo Karawaci 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 Karawaci will offset losses from the drop in Lippo Karawaci'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 |
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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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