Correlation Between PT Lippo and Bridgemarq Real

Can any of the company-specific risk be diversified away by investing in both PT Lippo and Bridgemarq Real 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 Lippo and Bridgemarq Real into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PT Lippo Karawaci and Bridgemarq Real Estate, you can compare the effects of market volatilities on PT Lippo and Bridgemarq Real 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 Lippo with a short position of Bridgemarq Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Lippo and Bridgemarq Real.

Diversification Opportunities for PT Lippo and Bridgemarq Real

0.0

Correlation Coefficient

PT Lippo  Bridgemarq Real

Pay attention - limited upside

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

Pair Corralation between PT Lippo and Bridgemarq Real

If you would invest  988.00  in Bridgemarq Real Estate on September 15, 2024 and sell it today you would earn a total of  59.00  from holding Bridgemarq Real Estate or generate 5.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	92.19%
Values	Daily Returns

PT Lippo Karawaci  vs.  Bridgemarq Real Estate

PT Lippo Karawaci

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PT Lippo Karawaci has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, PT Lippo is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Bridgemarq Real Estate

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bridgemarq Real Estate are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Bridgemarq Real may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with PT Lippo and Bridgemarq Real

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

The idea behind PT Lippo Karawaci and Bridgemarq Real Estate 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.