Correlation Between Pelayaran Nasional and Surya Toto
Can any of the company-specific risk be diversified away by investing in both Pelayaran Nasional and Surya Toto 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 Pelayaran Nasional and Surya Toto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pelayaran Nasional Bina and Surya Toto Indonesia, you can compare the effects of market volatilities on Pelayaran Nasional and Surya Toto 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 Pelayaran Nasional with a short position of Surya Toto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pelayaran Nasional and Surya Toto.
Diversification Opportunities for Pelayaran Nasional and Surya Toto
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pelayaran and Surya is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Pelayaran Nasional Bina and Surya Toto Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Toto Indonesia and Pelayaran Nasional 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 Pelayaran Nasional Bina are associated (or correlated) with Surya Toto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Toto Indonesia has no effect on the direction of Pelayaran Nasional i.e., Pelayaran Nasional and Surya Toto go up and down completely randomly.
Pair Corralation between Pelayaran Nasional and Surya Toto
Assuming the 90 days trading horizon Pelayaran Nasional Bina is expected to under-perform the Surya Toto. In addition to that, Pelayaran Nasional is 1.54 times more volatile than Surya Toto Indonesia. It trades about -0.12 of its total potential returns per unit of risk. Surya Toto Indonesia is currently generating about 0.23 per unit of volatility. If you would invest 21,071 in Surya Toto Indonesia on August 29, 2024 and sell it today you would earn a total of 1,529 from holding Surya Toto Indonesia or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Pelayaran Nasional Bina vs. Surya Toto Indonesia
Performance |
| Timeline |
| Pelayaran Nasional Bina |
| Surya Toto Indonesia |
Pelayaran Nasional and Surya Toto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pelayaran Nasional and Surya Toto
The main advantage of trading using opposite Pelayaran Nasional and Surya Toto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pelayaran Nasional position performs unexpectedly, Surya Toto 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 Toto will offset losses from the drop in Surya Toto's long position.| Pelayaran Nasional vs. Capitol Nusantara Indonesia | Pelayaran Nasional vs. Logindo Samudramakmur Tbk | Pelayaran Nasional vs. Wintermar Offshore Marine | Pelayaran Nasional vs. Buana Listya Tama |
| Surya Toto vs. Unggul Indah Cahaya | Surya Toto vs. Tembaga Mulia Semanan | Surya Toto vs. PT Mulia Industrindo | Surya Toto vs. Trias Sentosa 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.
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