Correlation Between Modernland Realty and Suryamas Dutamakmur
Can any of the company-specific risk be diversified away by investing in both Modernland Realty and Suryamas Dutamakmur 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 Modernland Realty and Suryamas Dutamakmur into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Modernland Realty Ltd and Suryamas Dutamakmur Tbk, you can compare the effects of market volatilities on Modernland Realty and Suryamas Dutamakmur 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 Modernland Realty with a short position of Suryamas Dutamakmur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Modernland Realty and Suryamas Dutamakmur.
Diversification Opportunities for Modernland Realty and Suryamas Dutamakmur
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Modernland and Suryamas is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Modernland Realty Ltd and Suryamas Dutamakmur Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suryamas Dutamakmur Tbk and Modernland Realty 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 Modernland Realty Ltd are associated (or correlated) with Suryamas Dutamakmur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suryamas Dutamakmur Tbk has no effect on the direction of Modernland Realty i.e., Modernland Realty and Suryamas Dutamakmur go up and down completely randomly.
Pair Corralation between Modernland Realty and Suryamas Dutamakmur
Assuming the 90 days trading horizon Modernland Realty Ltd is expected to under-perform the Suryamas Dutamakmur. But the stock apears to be less risky and, when comparing its historical volatility, Modernland Realty Ltd is 1.09 times less risky than Suryamas Dutamakmur. The stock trades about -0.04 of its potential returns per unit of risk. The Suryamas Dutamakmur Tbk is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 20,000 in Suryamas Dutamakmur Tbk on August 27, 2024 and sell it today you would earn a total of 31,500 from holding Suryamas Dutamakmur Tbk or generate 157.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Modernland Realty Ltd vs. Suryamas Dutamakmur Tbk
Performance |
| Timeline |
| Modernland Realty |
| Suryamas Dutamakmur Tbk |
Modernland Realty and Suryamas Dutamakmur Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Modernland Realty and Suryamas Dutamakmur
The main advantage of trading using opposite Modernland Realty and Suryamas Dutamakmur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modernland Realty position performs unexpectedly, Suryamas Dutamakmur 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 Suryamas Dutamakmur will offset losses from the drop in Suryamas Dutamakmur's long position.| Modernland Realty vs. Kawasan Industri Jababeka | Modernland Realty vs. Lippo Cikarang Tbk | Modernland Realty vs. Sentul City Tbk | Modernland Realty vs. Lippo Karawaci Tbk |
| Suryamas Dutamakmur vs. Pikko Land Development | Suryamas Dutamakmur vs. Ristia Bintang Mahkotasejati | Suryamas Dutamakmur vs. Pudjiadi Prestige Tbk | Suryamas Dutamakmur vs. Indonesia Prima Property |
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 CEOs Directory module to screen CEOs from public companies around the world.
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