Correlation Between HK Metals and Surya Citra
Can any of the company-specific risk be diversified away by investing in both HK Metals 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 HK Metals and Surya Citra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HK Metals Utama and Surya Citra Media, you can compare the effects of market volatilities on HK Metals 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 HK Metals with a short position of Surya Citra. Check out your portfolio center. Please also check ongoing floating volatility patterns of HK Metals and Surya Citra.
Diversification Opportunities for HK Metals and Surya Citra
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HKMU and Surya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HK Metals Utama 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 HK Metals 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 HK Metals Utama 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 HK Metals i.e., HK Metals and Surya Citra go up and down completely randomly.
Pair Corralation between HK Metals and Surya Citra
If you would invest 16,700 in Surya Citra Media on November 3, 2024 and sell it today you would earn a total of 1,400 from holding Surya Citra Media or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
HK Metals Utama vs. Surya Citra Media
Performance |
| Timeline |
| HK Metals Utama |
| Surya Citra Media |
HK Metals and Surya Citra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HK Metals and Surya Citra
The main advantage of trading using opposite HK Metals and Surya Citra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HK Metals 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.| HK Metals vs. PT Indonesia Kendaraan | HK Metals vs. Wijaya Karya Bangunan | HK Metals vs. Buyung Poetra Sembada | HK Metals vs. J Resources Asia |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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