Correlation Between Surya Esa and Tower Bersama
Can any of the company-specific risk be diversified away by investing in both Surya Esa and Tower Bersama 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 Tower Bersama 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 Tower Bersama Infrastructure, you can compare the effects of market volatilities on Surya Esa and Tower Bersama 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 Tower Bersama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Esa and Tower Bersama.
Diversification Opportunities for Surya Esa and Tower Bersama
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Surya and Tower is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Surya Esa Perkasa and Tower Bersama Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tower Bersama Infras 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 Tower Bersama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tower Bersama Infras has no effect on the direction of Surya Esa i.e., Surya Esa and Tower Bersama go up and down completely randomly.
Pair Corralation between Surya Esa and Tower Bersama
Assuming the 90 days trading horizon Surya Esa Perkasa is expected to generate 1.9 times more return on investment than Tower Bersama. However, Surya Esa is 1.9 times more volatile than Tower Bersama Infrastructure. It trades about 0.01 of its potential returns per unit of risk. Tower Bersama Infrastructure is currently generating about -0.01 per unit of risk. If you would invest 96,034 in Surya Esa Perkasa on August 25, 2024 and sell it today you would lose (12,534) from holding Surya Esa Perkasa or give up 13.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surya Esa Perkasa vs. Tower Bersama Infrastructure
Performance |
| Timeline |
| Surya Esa Perkasa |
| Tower Bersama Infras |
Surya Esa and Tower Bersama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surya Esa and Tower Bersama
The main advantage of trading using opposite Surya Esa and Tower Bersama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Esa position performs unexpectedly, Tower Bersama 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 Tower Bersama will offset losses from the drop in Tower Bersama's long position.| Surya Esa vs. Petrosea Tbk | Surya Esa vs. Harum Energy Tbk | Surya Esa vs. Perdana Karya Perkasa | Surya Esa vs. Samindo Resources Tbk |
| Tower Bersama vs. PT Sarana Menara | Tower Bersama vs. XL Axiata Tbk | Tower Bersama vs. Merdeka Copper Gold | Tower Bersama vs. Surya Citra Media |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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