Correlation Between Karya Bersama and Surya Permata
Can any of the company-specific risk be diversified away by investing in both Karya Bersama and Surya Permata 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 Karya Bersama and Surya Permata into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Karya Bersama Anugerah and Surya Permata Andalan, you can compare the effects of market volatilities on Karya Bersama and Surya Permata 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 Karya Bersama with a short position of Surya Permata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karya Bersama and Surya Permata.
Diversification Opportunities for Karya Bersama and Surya Permata
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Karya and Surya is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Karya Bersama Anugerah and Surya Permata Andalan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Permata Andalan and Karya Bersama 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 Karya Bersama Anugerah are associated (or correlated) with Surya Permata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Permata Andalan has no effect on the direction of Karya Bersama i.e., Karya Bersama and Surya Permata go up and down completely randomly.
Pair Corralation between Karya Bersama and Surya Permata
Assuming the 90 days trading horizon Karya Bersama Anugerah is expected to under-perform the Surya Permata. But the stock apears to be less risky and, when comparing its historical volatility, Karya Bersama Anugerah is 1.4 times less risky than Surya Permata. The stock trades about -0.25 of its potential returns per unit of risk. The Surya Permata Andalan is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 14,200 in Surya Permata Andalan on October 23, 2024 and sell it today you would earn a total of 1,700 from holding Surya Permata Andalan or generate 11.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Karya Bersama Anugerah vs. Surya Permata Andalan
Performance |
| Timeline |
| Karya Bersama Anugerah |
| Surya Permata Andalan |
Karya Bersama and Surya Permata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Karya Bersama and Surya Permata
The main advantage of trading using opposite Karya Bersama and Surya Permata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karya Bersama position performs unexpectedly, Surya Permata 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 Permata will offset losses from the drop in Surya Permata's long position.| Karya Bersama vs. Putra Rajawali Kencana | Karya Bersama vs. Repower Asia Indonesia | Karya Bersama vs. DMS Propertindo Tbk | Karya Bersama vs. Perintis Triniti Properti |
| Surya Permata vs. Bintang Oto Global | Surya Permata vs. Metro Healthcare Indonesia | Surya Permata vs. Bhakti Multi Artha | Surya Permata vs. MNC Vision Networks |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |