Correlation Between Pacific Strategic and Surya Citra
Can any of the company-specific risk be diversified away by investing in both Pacific Strategic 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 Pacific Strategic and Surya Citra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacific Strategic Financial and Surya Citra Media, you can compare the effects of market volatilities on Pacific Strategic 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 Pacific Strategic with a short position of Surya Citra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific Strategic and Surya Citra.
Diversification Opportunities for Pacific Strategic and Surya Citra
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pacific and Surya is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Pacific Strategic Financial 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 Pacific Strategic 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 Pacific Strategic Financial 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 Pacific Strategic i.e., Pacific Strategic and Surya Citra go up and down completely randomly.
Pair Corralation between Pacific Strategic and Surya Citra
Assuming the 90 days trading horizon Pacific Strategic Financial is expected to under-perform the Surya Citra. But the stock apears to be less risky and, when comparing its historical volatility, Pacific Strategic Financial is 1.6 times less risky than Surya Citra. The stock trades about -0.03 of its potential returns per unit of risk. The Surya Citra Media is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 14,193 in Surya Citra Media on September 2, 2024 and sell it today you would lose (1,293) from holding Surya Citra Media or give up 9.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pacific Strategic Financial vs. Surya Citra Media
Performance |
| Timeline |
| Pacific Strategic |
| Surya Citra Media |
Pacific Strategic and Surya Citra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacific Strategic and Surya Citra
The main advantage of trading using opposite Pacific Strategic and Surya Citra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacific Strategic 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.| Pacific Strategic vs. Asuransi Harta Aman | Pacific Strategic vs. Asuransi Bintang Tbk | Pacific Strategic vs. Mnc Kapital Indonesia | Pacific Strategic vs. Arthavest Tbk |
| Surya Citra vs. Indosat Tbk | Surya Citra vs. XL Axiata Tbk | Surya Citra vs. Energi Mega Persada | Surya Citra vs. Bakrie Brothers 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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