Correlation Between Lionmesh Prima and Dyandra Media

Can any of the company-specific risk be diversified away by investing in both Lionmesh Prima and Dyandra Media 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 Lionmesh Prima and Dyandra Media into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lionmesh Prima Tbk and Dyandra Media International, you can compare the effects of market volatilities on Lionmesh Prima and Dyandra Media 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 Lionmesh Prima with a short position of Dyandra Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lionmesh Prima and Dyandra Media.

Diversification Opportunities for Lionmesh Prima and Dyandra Media

-0.3

Correlation Coefficient

Lionmesh Prima  Dyandra Media

Very good diversification

The 3 months correlation between Lionmesh and Dyandra is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Lionmesh Prima Tbk and Dyandra Media International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dyandra Media Intern and Lionmesh Prima 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 Lionmesh Prima Tbk are associated (or correlated) with Dyandra Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dyandra Media Intern has no effect on the direction of Lionmesh Prima i.e., Lionmesh Prima and Dyandra Media go up and down completely randomly.

Pair Corralation between Lionmesh Prima and Dyandra Media

Assuming the 90 days trading horizon Lionmesh Prima Tbk is expected to generate 0.14 times more return on investment than Dyandra Media. However, Lionmesh Prima Tbk is 7.21 times less risky than Dyandra Media. It trades about -0.32 of its potential returns per unit of risk. Dyandra Media International is currently generating about -0.3 per unit of risk. If you would invest  40,200  in Lionmesh Prima Tbk on March 12, 2024 and sell it today you would lose (600.00) from holding Lionmesh Prima Tbk or give up 1.49% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	94.74%
Values	Daily Returns

Lionmesh Prima Tbk  vs.  Dyandra Media International

Lionmesh Prima Tbk

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lionmesh Prima Tbk are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Lionmesh Prima may actually be approaching a critical reversion point that can send shares even higher in July 2024.

Dyandra Media Intern

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dyandra Media International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Dyandra Media is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Lionmesh Prima and Dyandra Media

The main advantage of trading using opposite Lionmesh Prima and Dyandra Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lionmesh Prima position performs unexpectedly, Dyandra Media 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 Dyandra Media will offset losses from the drop in Dyandra Media's long position.

The idea behind Lionmesh Prima Tbk and Dyandra Media International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.