Correlation Between Surya Esa and PT Dewi
Can any of the company-specific risk be diversified away by investing in both Surya Esa and PT Dewi 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 PT Dewi 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 PT Dewi Shri, you can compare the effects of market volatilities on Surya Esa and PT Dewi 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 PT Dewi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Esa and PT Dewi.
Diversification Opportunities for Surya Esa and PT Dewi
Very weak diversification
The 3 months correlation between Surya and DEWI is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Surya Esa Perkasa and PT Dewi Shri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Dewi Shri 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 PT Dewi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Dewi Shri has no effect on the direction of Surya Esa i.e., Surya Esa and PT Dewi go up and down completely randomly.
Pair Corralation between Surya Esa and PT Dewi
Assuming the 90 days trading horizon Surya Esa Perkasa is expected to under-perform the PT Dewi. In addition to that, Surya Esa is 2.56 times more volatile than PT Dewi Shri. It trades about -0.23 of its total potential returns per unit of risk. PT Dewi Shri is currently generating about -0.1 per unit of volatility. If you would invest 8,400 in PT Dewi Shri on August 27, 2024 and sell it today you would lose (200.00) from holding PT Dewi Shri or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surya Esa Perkasa vs. PT Dewi Shri
Performance |
| Timeline |
| Surya Esa Perkasa |
| PT Dewi Shri |
Surya Esa and PT Dewi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surya Esa and PT Dewi
The main advantage of trading using opposite Surya Esa and PT Dewi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Esa position performs unexpectedly, PT Dewi 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 PT Dewi will offset losses from the drop in PT Dewi'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 |
| PT Dewi vs. Dharma Satya Nusantara | PT Dewi vs. Saratoga Investama Sedaya | PT Dewi vs. Surya Esa Perkasa | PT Dewi 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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