Correlation Between Surya Permata and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Surya Permata and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Surya Permata and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Permata and Dow Jones.
Diversification Opportunities for Surya Permata and Dow Jones
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Surya and Dow is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Surya Permata Andalan and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Surya Permata i.e., Surya Permata and Dow Jones go up and down completely randomly.
Pair Corralation between Surya Permata and Dow Jones
Assuming the 90 days trading horizon Surya Permata Andalan is expected to under-perform the Dow Jones. In addition to that, Surya Permata is 1.8 times more volatile than Dow Jones Industrial. It trades about -0.17 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.21 per unit of volatility. If you would invest 4,237,436 in Dow Jones Industrial on August 25, 2024 and sell it today you would earn a total of 192,215 from holding Dow Jones Industrial or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surya Permata Andalan vs. Dow Jones Industrial
Performance |
| Timeline |
Surya Permata and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Surya Permata Andalan
Pair trading matchups for Surya Permata
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Surya Permata and Dow Jones
The main advantage of trading using opposite Surya Permata and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Permata position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Surya Permata vs. Bintang Oto Global | Surya Permata vs. Metro Healthcare Indonesia | Surya Permata vs. Bhakti Multi Artha | Surya Permata vs. MNC Vision Networks |
| Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. Titan Machinery | Dow Jones vs. Simon Property Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |