Correlation Between Rimo International and Pollux Investasi

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Can any of the company-specific risk be diversified away by investing in both Rimo International and Pollux Investasi 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 Rimo International and Pollux Investasi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rimo International Lestari and Pollux Investasi Internasional, you can compare the effects of market volatilities on Rimo International and Pollux Investasi 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 Rimo International with a short position of Pollux Investasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rimo International and Pollux Investasi.

Diversification Opportunities for Rimo International and Pollux Investasi

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  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Rimo International and Pollux Investasi

If you would invest  5,000  in Rimo International Lestari on October 25, 2024 and sell it today you would earn a total of  0.00  from holding Rimo International Lestari or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Rimo International Lestari  vs.  Pollux Investasi Internasional

 Performance 
       Timeline  
Rimo International 

Risk-Adjusted Performance

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Over the last 90 days Rimo International Lestari has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Rimo International is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.
Pollux Investasi Int 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days Pollux Investasi Internasional has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Rimo International and Pollux Investasi Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Rimo International and Pollux Investasi

The main advantage of trading using opposite Rimo International and Pollux Investasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rimo International position performs unexpectedly, Pollux Investasi 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 Pollux Investasi will offset losses from the drop in Pollux Investasi's long position.
The idea behind Rimo International Lestari and Pollux Investasi Internasional 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.

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