Correlation Between Surya Esa and Era Mandiri
Can any of the company-specific risk be diversified away by investing in both Surya Esa and Era Mandiri 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 Era Mandiri 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 Era Mandiri Cemerlang, you can compare the effects of market volatilities on Surya Esa and Era Mandiri 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 Era Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Esa and Era Mandiri.
Diversification Opportunities for Surya Esa and Era Mandiri
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Surya and Era is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Surya Esa Perkasa and Era Mandiri Cemerlang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Era Mandiri Cemerlang 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 Era Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Era Mandiri Cemerlang has no effect on the direction of Surya Esa i.e., Surya Esa and Era Mandiri go up and down completely randomly.
Pair Corralation between Surya Esa and Era Mandiri
Assuming the 90 days trading horizon Surya Esa Perkasa is expected to generate 0.85 times more return on investment than Era Mandiri. However, Surya Esa Perkasa is 1.18 times less risky than Era Mandiri. It trades about 0.04 of its potential returns per unit of risk. Era Mandiri Cemerlang is currently generating about -0.05 per unit of risk. If you would invest 66,492 in Surya Esa Perkasa on September 12, 2024 and sell it today you would earn a total of 15,008 from holding Surya Esa Perkasa or generate 22.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surya Esa Perkasa vs. Era Mandiri Cemerlang
Performance |
| Timeline |
| Surya Esa Perkasa |
| Era Mandiri Cemerlang |
Surya Esa and Era Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surya Esa and Era Mandiri
The main advantage of trading using opposite Surya Esa and Era Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Esa position performs unexpectedly, Era Mandiri 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 Era Mandiri will offset losses from the drop in Era Mandiri'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 |
| Era Mandiri vs. Putra Rajawali Kencana | Era Mandiri vs. Sinergi Inti Plastindo | Era Mandiri vs. Karya Bersama Anugerah | Era Mandiri vs. Jasnita Telekomindo 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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