Correlation Between PT Winner and Lippo General
Can any of the company-specific risk be diversified away by investing in both PT Winner 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 PT Winner and Lippo General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Winner Nusantara and Lippo General Insurance, you can compare the effects of market volatilities on PT Winner 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 PT Winner with a short position of Lippo General. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Winner and Lippo General.
Diversification Opportunities for PT Winner and Lippo General
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WINR and Lippo is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding PT Winner Nusantara 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 PT Winner 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 PT Winner Nusantara 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 PT Winner i.e., PT Winner and Lippo General go up and down completely randomly.
Pair Corralation between PT Winner and Lippo General
Assuming the 90 days trading horizon PT Winner Nusantara is expected to generate 1.27 times more return on investment than Lippo General. However, PT Winner is 1.27 times more volatile than Lippo General Insurance. It trades about 0.06 of its potential returns per unit of risk. Lippo General Insurance is currently generating about 0.06 per unit of risk. If you would invest 1,100 in PT Winner Nusantara on September 3, 2024 and sell it today you would earn a total of 300.00 from holding PT Winner Nusantara or generate 27.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Winner Nusantara vs. Lippo General Insurance
Performance |
| Timeline |
| PT Winner Nusantara |
| Lippo General Insurance |
PT Winner and Lippo General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Winner and Lippo General
The main advantage of trading using opposite PT Winner and Lippo General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Winner 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.| PT Winner vs. Garuda Metalindo Tbk | PT Winner vs. Weha Transportasi Indonesia | PT Winner vs. HK Metals Utama | PT Winner vs. Kedawung Setia Industrial |
| Lippo General vs. Paninvest Tbk | Lippo General vs. Mitra Pinasthika Mustika | Lippo General vs. Jakarta Int Hotels | Lippo General vs. Asuransi Harta Aman |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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