Correlation Between Logindo Samudramakmur and Pelayaran Nasional
Can any of the company-specific risk be diversified away by investing in both Logindo Samudramakmur and Pelayaran Nasional 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 Logindo Samudramakmur and Pelayaran Nasional into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logindo Samudramakmur Tbk and Pelayaran Nasional Bina, you can compare the effects of market volatilities on Logindo Samudramakmur and Pelayaran Nasional 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 Logindo Samudramakmur with a short position of Pelayaran Nasional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logindo Samudramakmur and Pelayaran Nasional.
Diversification Opportunities for Logindo Samudramakmur and Pelayaran Nasional
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Logindo and Pelayaran is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Logindo Samudramakmur Tbk and Pelayaran Nasional Bina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pelayaran Nasional Bina and Logindo Samudramakmur 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 Logindo Samudramakmur Tbk are associated (or correlated) with Pelayaran Nasional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pelayaran Nasional Bina has no effect on the direction of Logindo Samudramakmur i.e., Logindo Samudramakmur and Pelayaran Nasional go up and down completely randomly.
Pair Corralation between Logindo Samudramakmur and Pelayaran Nasional
Assuming the 90 days trading horizon Logindo Samudramakmur Tbk is expected to generate 1.47 times more return on investment than Pelayaran Nasional. However, Logindo Samudramakmur is 1.47 times more volatile than Pelayaran Nasional Bina. It trades about 0.18 of its potential returns per unit of risk. Pelayaran Nasional Bina is currently generating about -0.04 per unit of risk. If you would invest 6,100 in Logindo Samudramakmur Tbk on February 15, 2024 and sell it today you would earn a total of 1,400 from holding Logindo Samudramakmur Tbk or generate 22.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 96.97% |
Values | Daily Returns |
Logindo Samudramakmur Tbk vs. Pelayaran Nasional Bina
Performance |
Timeline |
Logindo Samudramakmur Tbk |
Pelayaran Nasional Bina |
Logindo Samudramakmur and Pelayaran Nasional Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Logindo Samudramakmur and Pelayaran Nasional
The main advantage of trading using opposite Logindo Samudramakmur and Pelayaran Nasional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logindo Samudramakmur position performs unexpectedly, Pelayaran Nasional 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 Pelayaran Nasional will offset losses from the drop in Pelayaran Nasional's long position.Logindo Samudramakmur vs. Wintermar Offshore Marine | Logindo Samudramakmur vs. Mitrabahtera Segara Sejati | Logindo Samudramakmur vs. Soechi Lines Tbk | Logindo Samudramakmur vs. Buana Listya Tama |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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