Correlation Between Krispy Kreme and PT Lippo
Can any of the company-specific risk be diversified away by investing in both Krispy Kreme and PT Lippo 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 Krispy Kreme and PT Lippo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Krispy Kreme Doughnuts and PT Lippo Karawaci, you can compare the effects of market volatilities on Krispy Kreme and PT Lippo 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 Krispy Kreme with a short position of PT Lippo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Krispy Kreme and PT Lippo.
Diversification Opportunities for Krispy Kreme and PT Lippo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Krispy and PTLKF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Krispy Kreme Doughnuts and PT Lippo Karawaci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Lippo Karawaci and Krispy Kreme 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 Krispy Kreme Doughnuts are associated (or correlated) with PT Lippo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Lippo Karawaci has no effect on the direction of Krispy Kreme i.e., Krispy Kreme and PT Lippo go up and down completely randomly.
Pair Corralation between Krispy Kreme and PT Lippo
If you would invest 0.20 in PT Lippo Karawaci on January 25, 2024 and sell it today you would earn a total of 0.00 from holding PT Lippo Karawaci or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Krispy Kreme Doughnuts vs. PT Lippo Karawaci
Performance |
Timeline |
Krispy Kreme Doughnuts |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Lippo Karawaci |
Krispy Kreme and PT Lippo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Krispy Kreme and PT Lippo
The main advantage of trading using opposite Krispy Kreme and PT Lippo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Krispy Kreme position performs unexpectedly, PT Lippo 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 PT Lippo will offset losses from the drop in PT Lippo's long position.Krispy Kreme vs. Cedar Fair LP | Krispy Kreme vs. JD Sports Fashion | Krispy Kreme vs. 51Talk Online Education | Krispy Kreme vs. Playtech plc |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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