Correlation Between Surya Permata and Era Mandiri
Can any of the company-specific risk be diversified away by investing in both Surya Permata and Era Mandiri 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 Era Mandiri 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 Era Mandiri Cemerlang, you can compare the effects of market volatilities on Surya Permata and Era Mandiri 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 Era Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Permata and Era Mandiri.
Diversification Opportunities for Surya Permata and Era Mandiri
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Surya and Era is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Surya Permata Andalan and Era Mandiri Cemerlang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Era Mandiri Cemerlang 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 Era Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Era Mandiri Cemerlang has no effect on the direction of Surya Permata i.e., Surya Permata and Era Mandiri go up and down completely randomly.
Pair Corralation between Surya Permata and Era Mandiri
Assuming the 90 days trading horizon Surya Permata Andalan is expected to under-perform the Era Mandiri. In addition to that, Surya Permata is 1.1 times more volatile than Era Mandiri Cemerlang. It trades about -0.05 of its total potential returns per unit of risk. Era Mandiri Cemerlang is currently generating about -0.03 per unit of volatility. If you would invest 6,000 in Era Mandiri Cemerlang on September 4, 2024 and sell it today you would lose (3,400) from holding Era Mandiri Cemerlang or give up 56.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Surya Permata Andalan vs. Era Mandiri Cemerlang
Performance |
| Timeline |
| Surya Permata Andalan |
| Era Mandiri Cemerlang |
Surya Permata and Era Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surya Permata and Era Mandiri
The main advantage of trading using opposite Surya Permata and Era Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Permata position performs unexpectedly, Era Mandiri 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 Era Mandiri will offset losses from the drop in Era Mandiri'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 |
| Era Mandiri vs. Dharma Satya Nusantara | Era Mandiri vs. Saratoga Investama Sedaya | Era Mandiri vs. Surya Esa Perkasa | Era Mandiri vs. Elang Mahkota Teknologi |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |