Correlation Between Aneka Gas and Surya Permata
Can any of the company-specific risk be diversified away by investing in both Aneka Gas and Surya Permata 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 Permata 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 Permata Andalan, you can compare the effects of market volatilities on Aneka Gas and Surya Permata 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 Permata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Gas and Surya Permata.
Diversification Opportunities for Aneka Gas and Surya Permata
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aneka and Surya is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Gas Industri and Surya Permata Andalan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Permata Andalan 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 Permata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Permata Andalan has no effect on the direction of Aneka Gas i.e., Aneka Gas and Surya Permata go up and down completely randomly.
Pair Corralation between Aneka Gas and Surya Permata
Assuming the 90 days trading horizon Aneka Gas Industri is expected to generate 0.33 times more return on investment than Surya Permata. However, Aneka Gas Industri is 3.03 times less risky than Surya Permata. It trades about -0.02 of its potential returns per unit of risk. Surya Permata Andalan is currently generating about -0.05 per unit of risk. If you would invest 188,376 in Aneka Gas Industri on August 29, 2024 and sell it today you would lose (24,876) from holding Aneka Gas Industri or give up 13.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aneka Gas Industri vs. Surya Permata Andalan
Performance |
| Timeline |
| Aneka Gas Industri |
| Surya Permata Andalan |
Aneka Gas and Surya Permata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Gas and Surya Permata
The main advantage of trading using opposite Aneka Gas and Surya Permata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Gas position performs unexpectedly, Surya Permata 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 Permata will offset losses from the drop in Surya Permata'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 Permata vs. Jasa Armada Indonesia | Surya Permata vs. Cahayaputra Asa Keramik | Surya Permata vs. Campina Ice Cream |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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