Correlation Between Lippo Malls and Nucletron Electronic

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

By analyzing existing cross correlation between Lippo Malls Indonesia and Nucletron Electronic Aktiengesellschaft, you can compare the effects of market volatilities on Lippo Malls and Nucletron Electronic 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 Lippo Malls with a short position of Nucletron Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lippo Malls and Nucletron Electronic.

Diversification Opportunities for Lippo Malls and Nucletron Electronic

0.14

Correlation Coefficient

Lippo Malls  Nucletron Electronic

Average diversification

The 3 months correlation between Lippo and Nucletron is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Lippo Malls Indonesia and Nucletron Electronic Aktienges in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nucletron Electronic and Lippo Malls 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 Lippo Malls Indonesia are associated (or correlated) with Nucletron Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nucletron Electronic has no effect on the direction of Lippo Malls i.e., Lippo Malls and Nucletron Electronic go up and down completely randomly.

Pair Corralation between Lippo Malls and Nucletron Electronic

Assuming the 90 days horizon Lippo Malls Indonesia is expected to generate 6.57 times more return on investment than Nucletron Electronic. However, Lippo Malls is 6.57 times more volatile than Nucletron Electronic Aktiengesellschaft. It trades about 0.05 of its potential returns per unit of risk. Nucletron Electronic Aktiengesellschaft is currently generating about 0.13 per unit of risk. If you would invest  0.80  in Lippo Malls Indonesia on April 20, 2025 and sell it today you would earn a total of  0.06  from holding Lippo Malls Indonesia or generate 7.5% return on investment over 90 days.

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

Lippo Malls Indonesia  vs.  Nucletron Electronic Aktienges

Lippo Malls Indonesia

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lippo Malls Indonesia are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Lippo Malls may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Nucletron Electronic

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nucletron Electronic Aktiengesellschaft are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Nucletron Electronic is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Lippo Malls and Nucletron Electronic

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

The idea behind Lippo Malls Indonesia and Nucletron Electronic Aktiengesellschaft 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.