Correlation Between Aneka Gas and Surya Esa
Can any of the company-specific risk be diversified away by investing in both Aneka Gas and Surya Esa 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 Aneka Gas and Surya Esa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aneka Gas Industri and Surya Esa Perkasa, you can compare the effects of market volatilities on Aneka Gas and Surya Esa 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 Aneka Gas with a short position of Surya Esa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Gas and Surya Esa.
Diversification Opportunities for Aneka Gas and Surya Esa
Good diversification
The 3 months correlation between Aneka and Surya is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Gas Industri and Surya Esa Perkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Esa Perkasa and Aneka Gas 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 Aneka Gas Industri are associated (or correlated) with Surya Esa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Esa Perkasa has no effect on the direction of Aneka Gas i.e., Aneka Gas and Surya Esa go up and down completely randomly.
Pair Corralation between Aneka Gas and Surya Esa
Assuming the 90 days trading horizon Aneka Gas Industri is expected to under-perform the Surya Esa. But the stock apears to be less risky and, when comparing its historical volatility, Aneka Gas Industri is 2.35 times less risky than Surya Esa. The stock trades about -0.02 of its potential returns per unit of risk. The Surya Esa Perkasa is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 61,034 in Surya Esa Perkasa on August 29, 2024 and sell it today you would earn a total of 22,466 from holding Surya Esa Perkasa or generate 36.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aneka Gas Industri vs. Surya Esa Perkasa
Performance |
| Timeline |
| Aneka Gas Industri |
| Surya Esa Perkasa |
Aneka Gas and Surya Esa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Gas and Surya Esa
The main advantage of trading using opposite Aneka Gas and Surya Esa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Gas position performs unexpectedly, Surya Esa 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 Surya Esa will offset losses from the drop in Surya Esa's long position.| Aneka Gas vs. Surya Esa Perkasa | Aneka Gas vs. Elang Mahkota Teknologi | Aneka Gas vs. Merdeka Copper Gold | Aneka Gas vs. Saratoga Investama Sedaya |
| Surya Esa vs. Harum Energy Tbk | Surya Esa vs. Delta Dunia Makmur | Surya Esa vs. Adi Sarana Armada | Surya Esa vs. Elang Mahkota Teknologi |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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