Correlation Between Kirana Megatara and Surya Semesta
Can any of the company-specific risk be diversified away by investing in both Kirana Megatara and Surya Semesta 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 Kirana Megatara and Surya Semesta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kirana Megatara Tbk and Surya Semesta Internusa, you can compare the effects of market volatilities on Kirana Megatara and Surya Semesta 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 Kirana Megatara with a short position of Surya Semesta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kirana Megatara and Surya Semesta.
Diversification Opportunities for Kirana Megatara and Surya Semesta
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kirana and Surya is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kirana Megatara Tbk and Surya Semesta Internusa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Semesta Internusa and Kirana Megatara 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 Kirana Megatara Tbk are associated (or correlated) with Surya Semesta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Semesta Internusa has no effect on the direction of Kirana Megatara i.e., Kirana Megatara and Surya Semesta go up and down completely randomly.
Pair Corralation between Kirana Megatara and Surya Semesta
Assuming the 90 days trading horizon Kirana Megatara Tbk is expected to generate 1.09 times more return on investment than Surya Semesta. However, Kirana Megatara is 1.09 times more volatile than Surya Semesta Internusa. It trades about -0.27 of its potential returns per unit of risk. Surya Semesta Internusa is currently generating about -0.34 per unit of risk. If you would invest 37,000 in Kirana Megatara Tbk on August 29, 2024 and sell it today you would lose (6,000) from holding Kirana Megatara Tbk or give up 16.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kirana Megatara Tbk vs. Surya Semesta Internusa
Performance |
| Timeline |
| Kirana Megatara Tbk |
| Surya Semesta Internusa |
Kirana Megatara and Surya Semesta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kirana Megatara and Surya Semesta
The main advantage of trading using opposite Kirana Megatara and Surya Semesta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kirana Megatara position performs unexpectedly, Surya Semesta 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 Semesta will offset losses from the drop in Surya Semesta's long position.| Kirana Megatara vs. Emdeki Utama Tbk | Kirana Megatara vs. Panca Budi Idaman | Kirana Megatara vs. Mark Dynamics Indonesia | Kirana Megatara vs. Map Boga Adiperkasa |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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