Correlation Between Erajaya Swasembada and Surya Esa
Can any of the company-specific risk be diversified away by investing in both Erajaya Swasembada 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 Erajaya Swasembada and Surya Esa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Erajaya Swasembada Tbk and Surya Esa Perkasa, you can compare the effects of market volatilities on Erajaya Swasembada 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 Erajaya Swasembada with a short position of Surya Esa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erajaya Swasembada and Surya Esa.
Diversification Opportunities for Erajaya Swasembada and Surya Esa
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Erajaya and Surya is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Erajaya Swasembada Tbk 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 Erajaya Swasembada 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 Erajaya Swasembada Tbk 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 Erajaya Swasembada i.e., Erajaya Swasembada and Surya Esa go up and down completely randomly.
Pair Corralation between Erajaya Swasembada and Surya Esa
Assuming the 90 days trading horizon Erajaya Swasembada Tbk is expected to under-perform the Surya Esa. But the stock apears to be less risky and, when comparing its historical volatility, Erajaya Swasembada Tbk is 1.11 times less risky than Surya Esa. The stock trades about -0.06 of its potential returns per unit of risk. The Surya Esa Perkasa is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 88,500 in Surya Esa Perkasa on August 29, 2024 and sell it today you would lose (5,000) from holding Surya Esa Perkasa or give up 5.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Erajaya Swasembada Tbk vs. Surya Esa Perkasa
Performance |
| Timeline |
| Erajaya Swasembada Tbk |
| Surya Esa Perkasa |
Erajaya Swasembada and Surya Esa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erajaya Swasembada and Surya Esa
The main advantage of trading using opposite Erajaya Swasembada and Surya Esa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erajaya Swasembada 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.| Erajaya Swasembada vs. M Cash Integrasi | Erajaya Swasembada vs. NFC Indonesia PT | Erajaya Swasembada vs. Multipolar Technology Tbk | Erajaya Swasembada vs. Digital Mediatama Maxima |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |