Correlation Between Archi Indonesia and Surya Biru
Can any of the company-specific risk be diversified away by investing in both Archi Indonesia and Surya Biru 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 Archi Indonesia and Surya Biru into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Archi Indonesia Tbk and Surya Biru Murni, you can compare the effects of market volatilities on Archi Indonesia and Surya Biru 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 Archi Indonesia with a short position of Surya Biru. Check out your portfolio center. Please also check ongoing floating volatility patterns of Archi Indonesia and Surya Biru.
Diversification Opportunities for Archi Indonesia and Surya Biru
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Archi and Surya is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Archi Indonesia Tbk and Surya Biru Murni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Biru Murni and Archi Indonesia 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 Archi Indonesia Tbk are associated (or correlated) with Surya Biru. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Biru Murni has no effect on the direction of Archi Indonesia i.e., Archi Indonesia and Surya Biru go up and down completely randomly.
Pair Corralation between Archi Indonesia and Surya Biru
Assuming the 90 days trading horizon Archi Indonesia Tbk is expected to under-perform the Surya Biru. But the stock apears to be less risky and, when comparing its historical volatility, Archi Indonesia Tbk is 1.25 times less risky than Surya Biru. The stock trades about -0.06 of its potential returns per unit of risk. The Surya Biru Murni is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 15,797 in Surya Biru Murni on August 27, 2024 and sell it today you would lose (3,197) from holding Surya Biru Murni or give up 20.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Archi Indonesia Tbk vs. Surya Biru Murni
Performance |
| Timeline |
| Archi Indonesia Tbk |
| Surya Biru Murni |
Archi Indonesia and Surya Biru Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Archi Indonesia and Surya Biru
The main advantage of trading using opposite Archi Indonesia and Surya Biru positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Archi Indonesia position performs unexpectedly, Surya Biru 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 Biru will offset losses from the drop in Surya Biru's long position.| Archi Indonesia vs. Triputra Agro Persada | Archi Indonesia vs. Berkah Beton Sadaya | Archi Indonesia vs. PAM Mineral Tbk | Archi Indonesia vs. PT Bukalapak |
| Surya Biru vs. Archi Indonesia Tbk | Surya Biru vs. Nusa Palapa Gemilang | Surya Biru vs. Obm Drilchem PT | Surya Biru vs. PAM Mineral 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |