Correlation Between Madusari Murni and PT Surya
Can any of the company-specific risk be diversified away by investing in both Madusari Murni and PT Surya 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 Madusari Murni and PT Surya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Madusari Murni Indah and PT Surya Pertiwi, you can compare the effects of market volatilities on Madusari Murni and PT Surya 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 Madusari Murni with a short position of PT Surya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Madusari Murni and PT Surya.
Diversification Opportunities for Madusari Murni and PT Surya
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Madusari and SPTO is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Madusari Murni Indah and PT Surya Pertiwi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Surya Pertiwi and Madusari Murni 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 Madusari Murni Indah are associated (or correlated) with PT Surya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Surya Pertiwi has no effect on the direction of Madusari Murni i.e., Madusari Murni and PT Surya go up and down completely randomly.
Pair Corralation between Madusari Murni and PT Surya
Assuming the 90 days trading horizon Madusari Murni Indah is expected to under-perform the PT Surya. In addition to that, Madusari Murni is 1.61 times more volatile than PT Surya Pertiwi. It trades about -0.14 of its total potential returns per unit of risk. PT Surya Pertiwi is currently generating about 0.06 per unit of volatility. If you would invest 64,000 in PT Surya Pertiwi on November 3, 2024 and sell it today you would earn a total of 1,500 from holding PT Surya Pertiwi or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.37% |
| Values | Daily Returns |
Madusari Murni Indah vs. PT Surya Pertiwi
Performance |
| Timeline |
| Madusari Murni Indah |
| PT Surya Pertiwi |
Madusari Murni and PT Surya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Madusari Murni and PT Surya
The main advantage of trading using opposite Madusari Murni and PT Surya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Madusari Murni position performs unexpectedly, PT Surya 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 PT Surya will offset losses from the drop in PT Surya's long position.| Madusari Murni vs. Emdeki Utama Tbk | Madusari Murni vs. Kirana Megatara Tbk | Madusari Murni vs. Mahkota Group Tbk | Madusari Murni vs. Sriwahana |
| PT Surya vs. PT Indonesia Kendaraan | PT Surya vs. Cikarang Listrindo Tbk | PT Surya vs. PT Sarimelati Kencana | PT Surya vs. Surya Toto Indonesia |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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