Correlation Between Lenox Pasifik and DATAWALK B

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

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

Diversification Opportunities for Lenox Pasifik and DATAWALK B

-0.55

Correlation Coefficient

Lenox Pasifik  DATAWALK B

Excellent diversification

The 3 months correlation between Lenox and DATAWALK is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Lenox Pasifik Investama and DATAWALK B H ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATAWALK B H and Lenox Pasifik 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 Lenox Pasifik Investama are associated (or correlated) with DATAWALK B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DATAWALK B H has no effect on the direction of Lenox Pasifik i.e., Lenox Pasifik and DATAWALK B go up and down completely randomly.

Pair Corralation between Lenox Pasifik and DATAWALK B

Assuming the 90 days trading horizon Lenox Pasifik Investama is expected to generate 2.32 times more return on investment than DATAWALK B. However, Lenox Pasifik is 2.32 times more volatile than DATAWALK B H ZY. It trades about 0.05 of its potential returns per unit of risk. DATAWALK B H ZY is currently generating about 0.11 per unit of risk. If you would invest  0.25  in Lenox Pasifik Investama on April 21, 2025 and sell it today you would earn a total of  0.00  from holding Lenox Pasifik Investama or generate 0.0% return on investment over 90 days.

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

Lenox Pasifik Investama  vs.  DATAWALK B H ZY

Lenox Pasifik Investama

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lenox Pasifik Investama are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Lenox Pasifik reported solid returns over the last few months and may actually be approaching a breakup point.

DATAWALK B H

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in DATAWALK B H ZY are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, DATAWALK B reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lenox Pasifik and DATAWALK B

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

The idea behind Lenox Pasifik Investama and DATAWALK B H ZY 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.