Correlation Between Communication Cable and Surya Citra
Can any of the company-specific risk be diversified away by investing in both Communication Cable 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 Communication Cable and Surya Citra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Communication Cable Systems and Surya Citra Media, you can compare the effects of market volatilities on Communication Cable 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 Communication Cable with a short position of Surya Citra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Communication Cable and Surya Citra.
Diversification Opportunities for Communication Cable and Surya Citra
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Communication and Surya is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Communication Cable Systems 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 Communication Cable 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 Communication Cable Systems 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 Communication Cable i.e., Communication Cable and Surya Citra go up and down completely randomly.
Pair Corralation between Communication Cable and Surya Citra
Assuming the 90 days trading horizon Communication Cable Systems is expected to under-perform the Surya Citra. In addition to that, Communication Cable is 1.13 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 -0.03 per unit of volatility. If you would invest 19,600 in Surya Citra Media on August 28, 2024 and sell it today you would lose (7,200) from holding Surya Citra Media or give up 36.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Communication Cable Systems vs. Surya Citra Media
Performance |
| Timeline |
| Communication Cable |
| Surya Citra Media |
Communication Cable and Surya Citra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Communication Cable and Surya Citra
The main advantage of trading using opposite Communication Cable and Surya Citra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Communication Cable 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.| Communication Cable vs. Hartadinata Abadi Tbk | Communication Cable vs. Estika Tata Tiara | Communication Cable vs. Garudafood Putra Putri | Communication Cable vs. PT Indonesia Kendaraan |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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