Correlation Between XL Axiata and Surya Citra
Can any of the company-specific risk be diversified away by investing in both XL Axiata and Surya Citra 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 XL Axiata and Surya Citra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XL Axiata Tbk and Surya Citra Media, you can compare the effects of market volatilities on XL Axiata and Surya Citra 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 XL Axiata with a short position of Surya Citra. Check out your portfolio center. Please also check ongoing floating volatility patterns of XL Axiata and Surya Citra.
Diversification Opportunities for XL Axiata and Surya Citra
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between EXCL and Surya is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding XL Axiata Tbk and Surya Citra Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Citra Media and XL Axiata 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 XL Axiata Tbk are associated (or correlated) with Surya Citra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Citra Media has no effect on the direction of XL Axiata i.e., XL Axiata and Surya Citra go up and down completely randomly.
Pair Corralation between XL Axiata and Surya Citra
Assuming the 90 days trading horizon XL Axiata Tbk is expected to under-perform the Surya Citra. But the stock apears to be less risky and, when comparing its historical volatility, XL Axiata Tbk is 2.09 times less risky than Surya Citra. The stock trades about -0.11 of its potential returns per unit of risk. The Surya Citra Media is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 11,716 in Surya Citra Media on August 28, 2024 and sell it today you would earn a total of 684.00 from holding Surya Citra Media or generate 5.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XL Axiata Tbk vs. Surya Citra Media
Performance |
| Timeline |
| XL Axiata Tbk |
| Surya Citra Media |
XL Axiata and Surya Citra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XL Axiata and Surya Citra
The main advantage of trading using opposite XL Axiata and Surya Citra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XL Axiata position performs unexpectedly, Surya Citra 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 Citra will offset losses from the drop in Surya Citra's long position.| XL Axiata vs. Indosat Tbk | XL Axiata vs. Jasa Marga Tbk | XL Axiata vs. Indocement Tunggal Prakarsa | XL Axiata vs. Semen Indonesia Persero |
| Surya Citra vs. Mnc Land Tbk | Surya Citra vs. MNC Vision Networks | Surya Citra vs. Medikaloka Hermina PT |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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