Correlation Between Clipan Finance and Surya Semesta
Can any of the company-specific risk be diversified away by investing in both Clipan Finance 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 Clipan Finance and Surya Semesta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clipan Finance Indonesia and Surya Semesta Internusa, you can compare the effects of market volatilities on Clipan Finance 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 Clipan Finance with a short position of Surya Semesta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clipan Finance and Surya Semesta.
Diversification Opportunities for Clipan Finance and Surya Semesta
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Clipan and Surya is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Clipan Finance Indonesia 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 Clipan Finance 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 Clipan Finance Indonesia 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 Clipan Finance i.e., Clipan Finance and Surya Semesta go up and down completely randomly.
Pair Corralation between Clipan Finance and Surya Semesta
Assuming the 90 days trading horizon Clipan Finance Indonesia is expected to generate 0.51 times more return on investment than Surya Semesta. However, Clipan Finance Indonesia is 1.97 times less risky than Surya Semesta. It trades about -0.65 of its potential returns per unit of risk. Surya Semesta Internusa is currently generating about -0.34 per unit of risk. If you would invest 39,600 in Clipan Finance Indonesia on August 29, 2024 and sell it today you would lose (6,800) from holding Clipan Finance Indonesia or give up 17.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clipan Finance Indonesia vs. Surya Semesta Internusa
Performance |
| Timeline |
| Clipan Finance Indonesia |
| Surya Semesta Internusa |
Clipan Finance and Surya Semesta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clipan Finance and Surya Semesta
The main advantage of trading using opposite Clipan Finance and Surya Semesta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clipan Finance 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.| Clipan Finance vs. BFI Finance Indonesia | Clipan Finance vs. Adira Dinamika Multi | Clipan Finance vs. Paninvest Tbk | Clipan Finance vs. Panin Financial 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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