Correlation Between Delta Dunia and Surya Esa
Can any of the company-specific risk be diversified away by investing in both Delta Dunia and Surya Esa 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 Delta Dunia and Surya Esa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delta Dunia Makmur and Surya Esa Perkasa, you can compare the effects of market volatilities on Delta Dunia and Surya Esa 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 Delta Dunia with a short position of Surya Esa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Dunia and Surya Esa.
Diversification Opportunities for Delta Dunia and Surya Esa
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Delta and Surya is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Delta Dunia Makmur and Surya Esa Perkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Esa Perkasa and Delta Dunia 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 Delta Dunia Makmur are associated (or correlated) with Surya Esa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Esa Perkasa has no effect on the direction of Delta Dunia i.e., Delta Dunia and Surya Esa go up and down completely randomly.
Pair Corralation between Delta Dunia and Surya Esa
Assuming the 90 days trading horizon Delta Dunia Makmur is expected to generate 0.86 times more return on investment than Surya Esa. However, Delta Dunia Makmur is 1.16 times less risky than Surya Esa. It trades about 0.09 of its potential returns per unit of risk. Surya Esa Perkasa is currently generating about 0.01 per unit of risk. If you would invest 25,613 in Delta Dunia Makmur on August 27, 2024 and sell it today you would earn a total of 39,887 from holding Delta Dunia Makmur or generate 155.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Dunia Makmur vs. Surya Esa Perkasa
Performance |
| Timeline |
| Delta Dunia Makmur |
| Surya Esa Perkasa |
Delta Dunia and Surya Esa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Dunia and Surya Esa
The main advantage of trading using opposite Delta Dunia and Surya Esa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Dunia position performs unexpectedly, Surya Esa 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 Esa will offset losses from the drop in Surya Esa's long position.| Delta Dunia vs. Indika Energy Tbk | Delta Dunia vs. Elnusa Tbk | Delta Dunia vs. Harum Energy Tbk | Delta Dunia vs. Energi Mega Persada |
| Surya Esa vs. Harum Energy Tbk | Surya Esa vs. Delta Dunia Makmur | Surya Esa vs. Adi Sarana Armada | Surya Esa vs. Elang Mahkota Teknologi |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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