Correlation Between Alkindo Naratama and Surya Semesta
Can any of the company-specific risk be diversified away by investing in both Alkindo Naratama and Surya Semesta 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 Alkindo Naratama and Surya Semesta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alkindo Naratama Tbk and Surya Semesta Internusa, you can compare the effects of market volatilities on Alkindo Naratama and Surya Semesta 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 Alkindo Naratama with a short position of Surya Semesta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkindo Naratama and Surya Semesta.
Diversification Opportunities for Alkindo Naratama and Surya Semesta
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alkindo and Surya is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Alkindo Naratama Tbk and Surya Semesta Internusa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Semesta Internusa and Alkindo Naratama 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 Alkindo Naratama Tbk are associated (or correlated) with Surya Semesta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Semesta Internusa has no effect on the direction of Alkindo Naratama i.e., Alkindo Naratama and Surya Semesta go up and down completely randomly.
Pair Corralation between Alkindo Naratama and Surya Semesta
Assuming the 90 days trading horizon Alkindo Naratama Tbk is expected to under-perform the Surya Semesta. In addition to that, Alkindo Naratama is 1.05 times more volatile than Surya Semesta Internusa. It trades about -0.29 of its total potential returns per unit of risk. Surya Semesta Internusa is currently generating about -0.23 per unit of volatility. If you would invest 112,000 in Surya Semesta Internusa on November 2, 2024 and sell it today you would lose (12,000) from holding Surya Semesta Internusa or give up 10.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Alkindo Naratama Tbk vs. Surya Semesta Internusa
Performance |
| Timeline |
| Alkindo Naratama Tbk |
| Surya Semesta Internusa |
Alkindo Naratama and Surya Semesta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alkindo Naratama and Surya Semesta
The main advantage of trading using opposite Alkindo Naratama and Surya Semesta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alkindo Naratama position performs unexpectedly, Surya Semesta 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 Semesta will offset losses from the drop in Surya Semesta's long position.| Alkindo Naratama vs. Argha Karya Prima | Alkindo Naratama vs. Gunawan Dianjaya Steel | Alkindo Naratama vs. Arwana Citramulia Tbk | Alkindo Naratama vs. Alakasa Industrindo Tbk |
| Surya Semesta vs. Kabelindo Murni Tbk | Surya Semesta vs. Sumi Indo Kabel | Surya Semesta vs. Kmi Wire And | Surya Semesta vs. Indospring Tbk |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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