Correlation Between Lotte Chemical and Insas Bhd

Can any of the company-specific risk be diversified away by investing in both Lotte Chemical and Insas Bhd 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 Lotte Chemical and Insas Bhd into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lotte Chemical Titan and Insas Bhd, you can compare the effects of market volatilities on Lotte Chemical and Insas Bhd 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 Lotte Chemical with a short position of Insas Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotte Chemical and Insas Bhd.

Diversification Opportunities for Lotte Chemical and Insas Bhd

0.0

Correlation Coefficient

Lotte Chemical  Insas Bhd

Pay attention - limited upside

The 3 months correlation between Lotte and Insas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lotte Chemical Titan and Insas Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insas Bhd and Lotte Chemical 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 Lotte Chemical Titan are associated (or correlated) with Insas Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insas Bhd has no effect on the direction of Lotte Chemical i.e., Lotte Chemical and Insas Bhd go up and down completely randomly.

Pair Corralation between Lotte Chemical and Insas Bhd

If you would invest  0.00  in Insas Bhd on December 29, 2024 and sell it today you would earn a total of  0.00  from holding Insas Bhd or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

Lotte Chemical Titan  vs.  Insas Bhd

Lotte Chemical Titan

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lotte Chemical Titan has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Insas Bhd

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Lotte Chemical and Insas Bhd

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

The idea behind Lotte Chemical Titan and Insas Bhd 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.