Correlation Between Regions Financial and Lippo Malls

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

Diversification Opportunities for Regions Financial and Lippo Malls

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Regions Financial and Lippo Malls

If you would invest  1.00  in Lippo Malls Indonesia on September 9, 2025 and sell it today you would earn a total of  0.00  from holding Lippo Malls Indonesia or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Regions Financial  vs.  Lippo Malls Indonesia

 Performance 
       Timeline  
Regions Financial 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Regions Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Regions Financial is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.
Lippo Malls Indonesia 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Lippo Malls Indonesia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Lippo Malls is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Regions Financial and Lippo Malls Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Regions Financial and Lippo Malls

The main advantage of trading using opposite Regions Financial and Lippo Malls positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regions Financial position performs unexpectedly, Lippo Malls 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 Lippo Malls will offset losses from the drop in Lippo Malls' long position.
The idea behind Regions Financial and Lippo Malls Indonesia 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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