Correlation Between Surya Permata and Satria Mega
Can any of the company-specific risk be diversified away by investing in both Surya Permata and Satria Mega 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 Satria Mega 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 Satria Mega Kencana, you can compare the effects of market volatilities on Surya Permata and Satria Mega 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 Satria Mega. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Permata and Satria Mega.
Diversification Opportunities for Surya Permata and Satria Mega
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Surya and Satria is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Surya Permata Andalan and Satria Mega Kencana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satria Mega Kencana 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 Satria Mega. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satria Mega Kencana has no effect on the direction of Surya Permata i.e., Surya Permata and Satria Mega go up and down completely randomly.
Pair Corralation between Surya Permata and Satria Mega
Assuming the 90 days trading horizon Surya Permata Andalan is expected to generate 0.57 times more return on investment than Satria Mega. However, Surya Permata Andalan is 1.75 times less risky than Satria Mega. It trades about -0.16 of its potential returns per unit of risk. Satria Mega Kencana is currently generating about -0.15 per unit of risk. If you would invest 14,400 in Surya Permata Andalan on August 30, 2024 and sell it today you would lose (800.00) from holding Surya Permata Andalan or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surya Permata Andalan vs. Satria Mega Kencana
Performance |
| Timeline |
| Surya Permata Andalan |
| Satria Mega Kencana |
Surya Permata and Satria Mega Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surya Permata and Satria Mega
The main advantage of trading using opposite Surya Permata and Satria Mega positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Permata position performs unexpectedly, Satria Mega 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 Satria Mega will offset losses from the drop in Satria Mega's 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 |
| Satria Mega vs. Shield On Service | Satria Mega vs. MNC Studios International | Satria Mega vs. Royal Prima PT | Satria Mega vs. Sanurhasta Mitra PT |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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