Correlation Between Kresna Graha and Lenox Pasifik

Can any of the company-specific risk be diversified away by investing in both Kresna Graha and Lenox Pasifik 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 Kresna Graha and Lenox Pasifik into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kresna Graha Investama and Lenox Pasifik Investama, you can compare the effects of market volatilities on Kresna Graha and Lenox Pasifik 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 Kresna Graha with a short position of Lenox Pasifik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kresna Graha and Lenox Pasifik.

Diversification Opportunities for Kresna Graha and Lenox Pasifik

-0.25

Correlation Coefficient

Kresna Graha  Lenox Pasifik

Very good diversification

The 3 months correlation between Kresna and Lenox is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kresna Graha Investama and Lenox Pasifik Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lenox Pasifik Investama and Kresna Graha 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 Kresna Graha Investama are associated (or correlated) with Lenox Pasifik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lenox Pasifik Investama has no effect on the direction of Kresna Graha i.e., Kresna Graha and Lenox Pasifik go up and down completely randomly.

Pair Corralation between Kresna Graha and Lenox Pasifik

Assuming the 90 days trading horizon Kresna Graha Investama is expected to under-perform the Lenox Pasifik. In addition to that, Kresna Graha is 2.32 times more volatile than Lenox Pasifik Investama. It trades about -0.19 of its total potential returns per unit of risk. Lenox Pasifik Investama is currently generating about -0.2 per unit of volatility. If you would invest  7,000  in Lenox Pasifik Investama on September 12, 2024 and sell it today you would lose (1,200) from holding Lenox Pasifik Investama or give up 17.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Kresna Graha Investama  vs.  Lenox Pasifik Investama

Kresna Graha Investama

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kresna Graha Investama 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 forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Lenox Pasifik Investama

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lenox Pasifik Investama are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Lenox Pasifik disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kresna Graha and Lenox Pasifik

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

The idea behind Kresna Graha Investama and Lenox Pasifik Investama 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.