Correlation Between Perintis Triniti and Lancartama Sejati
Can any of the company-specific risk be diversified away by investing in both Perintis Triniti and Lancartama Sejati 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 Perintis Triniti and Lancartama Sejati into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perintis Triniti Properti and Lancartama Sejati Tbk, you can compare the effects of market volatilities on Perintis Triniti and Lancartama Sejati 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 Perintis Triniti with a short position of Lancartama Sejati. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perintis Triniti and Lancartama Sejati.
Diversification Opportunities for Perintis Triniti and Lancartama Sejati
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Perintis and Lancartama is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Perintis Triniti Properti and Lancartama Sejati Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lancartama Sejati Tbk and Perintis Triniti 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 Perintis Triniti Properti are associated (or correlated) with Lancartama Sejati. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lancartama Sejati Tbk has no effect on the direction of Perintis Triniti i.e., Perintis Triniti and Lancartama Sejati go up and down completely randomly.
Pair Corralation between Perintis Triniti and Lancartama Sejati
Assuming the 90 days trading horizon Perintis Triniti is expected to generate 4.56 times less return on investment than Lancartama Sejati. But when comparing it to its historical volatility, Perintis Triniti Properti is 2.45 times less risky than Lancartama Sejati. It trades about 0.05 of its potential returns per unit of risk. Lancartama Sejati Tbk is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 900.00 in Lancartama Sejati Tbk on September 1, 2024 and sell it today you would earn a total of 500.00 from holding Lancartama Sejati Tbk or generate 55.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Perintis Triniti Properti vs. Lancartama Sejati Tbk
Performance |
| Timeline |
| Perintis Triniti Properti |
| Lancartama Sejati Tbk |
Perintis Triniti and Lancartama Sejati Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perintis Triniti and Lancartama Sejati
The main advantage of trading using opposite Perintis Triniti and Lancartama Sejati positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perintis Triniti position performs unexpectedly, Lancartama Sejati 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 Lancartama Sejati will offset losses from the drop in Lancartama Sejati's long position.| Perintis Triniti vs. Pelita Samudera Shipping | Perintis Triniti vs. Transcoal Pacific Tbk | Perintis Triniti vs. Karya Bersama Anugerah | Perintis Triniti vs. Provident Agro Tbk |
| Lancartama Sejati vs. Perintis Triniti Properti | Lancartama Sejati vs. Diamond Citra Propertindo | Lancartama Sejati vs. Karya Bersama Anugerah | Lancartama Sejati vs. Pratama Widya Tbk |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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