Correlation Between Surya Permata and Diamond Citra
Can any of the company-specific risk be diversified away by investing in both Surya Permata and Diamond 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 Surya Permata and Diamond Citra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surya Permata Andalan and Diamond Citra Propertindo, you can compare the effects of market volatilities on Surya Permata and Diamond 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 Surya Permata with a short position of Diamond Citra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Permata and Diamond Citra.
Diversification Opportunities for Surya Permata and Diamond Citra
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Surya and Diamond is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Surya Permata Andalan and Diamond Citra Propertindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diamond Citra Propertindo and Surya Permata 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 Surya Permata Andalan are associated (or correlated) with Diamond Citra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diamond Citra Propertindo has no effect on the direction of Surya Permata i.e., Surya Permata and Diamond Citra go up and down completely randomly.
Pair Corralation between Surya Permata and Diamond Citra
Assuming the 90 days trading horizon Surya Permata Andalan is expected to under-perform the Diamond Citra. But the stock apears to be less risky and, when comparing its historical volatility, Surya Permata Andalan is 6.65 times less risky than Diamond Citra. The stock trades about -0.02 of its potential returns per unit of risk. The Diamond Citra Propertindo is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 500.00 in Diamond Citra Propertindo on September 5, 2024 and sell it today you would earn a total of 200.00 from holding Diamond Citra Propertindo or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Surya Permata Andalan vs. Diamond Citra Propertindo
Performance |
| Timeline |
| Surya Permata Andalan |
| Diamond Citra Propertindo |
Surya Permata and Diamond Citra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surya Permata and Diamond Citra
The main advantage of trading using opposite Surya Permata and Diamond Citra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Permata position performs unexpectedly, Diamond 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 Diamond Citra will offset losses from the drop in Diamond Citra's long position.| Surya Permata vs. Campina Ice Cream | Surya Permata vs. Mitra Pinasthika Mustika | Surya Permata vs. Jakarta Int Hotels | Surya Permata vs. Indosat Tbk |
| Diamond Citra vs. Bima Sakti Pertiwi | Diamond Citra vs. Karya Bersama Anugerah | Diamond Citra vs. Pollux Properti Indonesia | Diamond Citra vs. Surya Permata Andalan |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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