Correlation Between Akr Corporindo and Surya Citra
Can any of the company-specific risk be diversified away by investing in both Akr Corporindo and Surya Citra 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 Akr Corporindo and Surya Citra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akr Corporindo Tbk and Surya Citra Media, you can compare the effects of market volatilities on Akr Corporindo and Surya Citra 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 Akr Corporindo with a short position of Surya Citra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akr Corporindo and Surya Citra.
Diversification Opportunities for Akr Corporindo and Surya Citra
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Akr and Surya is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Akr Corporindo Tbk and Surya Citra Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Citra Media and Akr Corporindo 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 Akr Corporindo Tbk are associated (or correlated) with Surya Citra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Citra Media has no effect on the direction of Akr Corporindo i.e., Akr Corporindo and Surya Citra go up and down completely randomly.
Pair Corralation between Akr Corporindo and Surya Citra
Assuming the 90 days trading horizon Akr Corporindo Tbk is expected to under-perform the Surya Citra. In addition to that, Akr Corporindo is 1.08 times more volatile than Surya Citra Media. It trades about -0.06 of its total potential returns per unit of risk. Surya Citra Media is currently generating about 0.14 per unit of volatility. If you would invest 16,700 in Surya Citra Media on November 3, 2024 and sell it today you would earn a total of 1,400 from holding Surya Citra Media or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akr Corporindo Tbk vs. Surya Citra Media
Performance |
| Timeline |
| Akr Corporindo Tbk |
| Surya Citra Media |
Akr Corporindo and Surya Citra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akr Corporindo and Surya Citra
The main advantage of trading using opposite Akr Corporindo and Surya Citra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akr Corporindo position performs unexpectedly, Surya Citra 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 Citra will offset losses from the drop in Surya Citra's long position.| Akr Corporindo vs. Charoen Pokphand Indonesia | Akr Corporindo vs. Indocement Tunggal Prakarsa | Akr Corporindo vs. Bumi Serpong Damai | Akr Corporindo vs. Jasa Marga Tbk |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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