Correlation Between Unggul Indah and Lionmesh Prima
Can any of the company-specific risk be diversified away by investing in both Unggul Indah and Lionmesh Prima 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 Unggul Indah and Lionmesh Prima into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unggul Indah Cahaya and Lionmesh Prima Tbk, you can compare the effects of market volatilities on Unggul Indah and Lionmesh Prima 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 Unggul Indah with a short position of Lionmesh Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unggul Indah and Lionmesh Prima.
Diversification Opportunities for Unggul Indah and Lionmesh Prima
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Unggul and Lionmesh is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Unggul Indah Cahaya and Lionmesh Prima Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lionmesh Prima Tbk and Unggul Indah 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 Unggul Indah Cahaya are associated (or correlated) with Lionmesh Prima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lionmesh Prima Tbk has no effect on the direction of Unggul Indah i.e., Unggul Indah and Lionmesh Prima go up and down completely randomly.
Pair Corralation between Unggul Indah and Lionmesh Prima
If you would invest 25,600 in Lionmesh Prima Tbk on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Lionmesh Prima Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unggul Indah Cahaya vs. Lionmesh Prima Tbk
Performance |
| Timeline |
| Unggul Indah Cahaya |
| Lionmesh Prima Tbk |
Unggul Indah and Lionmesh Prima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unggul Indah and Lionmesh Prima
The main advantage of trading using opposite Unggul Indah and Lionmesh Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unggul Indah position performs unexpectedly, Lionmesh Prima 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 Lionmesh Prima will offset losses from the drop in Lionmesh Prima's long position.| Unggul Indah vs. Trias Sentosa Tbk | Unggul Indah vs. Suparma Tbk | Unggul Indah vs. Tembaga Mulia Semanan | Unggul Indah vs. Surya Toto Indonesia |
| Lionmesh Prima vs. Lion Metal Works | Lionmesh Prima vs. Pelangi Indah Canindo | Lionmesh Prima vs. Indal Aluminium Industry | Lionmesh Prima vs. Tembaga Mulia Semanan |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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