Correlation Between Surya Esa and Citra Borneo
Can any of the company-specific risk be diversified away by investing in both Surya Esa and Citra Borneo 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 Surya Esa and Citra Borneo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surya Esa Perkasa and Citra Borneo Utama, you can compare the effects of market volatilities on Surya Esa and Citra Borneo 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 Surya Esa with a short position of Citra Borneo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Esa and Citra Borneo.
Diversification Opportunities for Surya Esa and Citra Borneo
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Surya and Citra is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Surya Esa Perkasa and Citra Borneo Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citra Borneo Utama and Surya Esa 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 Surya Esa Perkasa are associated (or correlated) with Citra Borneo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citra Borneo Utama has no effect on the direction of Surya Esa i.e., Surya Esa and Citra Borneo go up and down completely randomly.
Pair Corralation between Surya Esa and Citra Borneo
Assuming the 90 days trading horizon Surya Esa is expected to generate 3.12 times less return on investment than Citra Borneo. But when comparing it to its historical volatility, Surya Esa Perkasa is 1.39 times less risky than Citra Borneo. It trades about 0.01 of its potential returns per unit of risk. Citra Borneo Utama is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 109,157 in Citra Borneo Utama on August 27, 2024 and sell it today you would lose (657.00) from holding Citra Borneo Utama or give up 0.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surya Esa Perkasa vs. Citra Borneo Utama
Performance |
| Timeline |
| Surya Esa Perkasa |
| Citra Borneo Utama |
Surya Esa and Citra Borneo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surya Esa and Citra Borneo
The main advantage of trading using opposite Surya Esa and Citra Borneo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Esa position performs unexpectedly, Citra Borneo 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 Citra Borneo will offset losses from the drop in Citra Borneo's long position.| Surya Esa vs. Harum Energy Tbk | Surya Esa vs. Delta Dunia Makmur | Surya Esa vs. Adi Sarana Armada | Surya Esa vs. Elang Mahkota Teknologi |
| Citra Borneo vs. Dharma Satya Nusantara | Citra Borneo vs. Saratoga Investama Sedaya | Citra Borneo vs. Surya Esa Perkasa | Citra Borneo 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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