Correlation Between Visi Media and Lippo General
Can any of the company-specific risk be diversified away by investing in both Visi Media 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 Visi Media and Lippo General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visi Media Asia and Lippo General Insurance, you can compare the effects of market volatilities on Visi Media 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 Visi Media with a short position of Lippo General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visi Media and Lippo General.
Diversification Opportunities for Visi Media and Lippo General
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visi and Lippo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Visi Media Asia 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 Visi Media 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 Visi Media Asia 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 Visi Media i.e., Visi Media and Lippo General go up and down completely randomly.
Pair Corralation between Visi Media and Lippo General
If you would invest 35,400 in Lippo General Insurance on September 2, 2024 and sell it today you would earn a total of 1,400 from holding Lippo General Insurance or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Visi Media Asia vs. Lippo General Insurance
Performance |
| Timeline |
| Visi Media Asia |
| Lippo General Insurance |
Visi Media and Lippo General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visi Media and Lippo General
The main advantage of trading using opposite Visi Media and Lippo General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visi Media 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.| Visi Media vs. Surya Semesta Internusa | Visi Media vs. Bumi Resources Minerals | Visi Media vs. Multipolar Tbk | Visi Media vs. Surya Citra Media |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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