Correlation Between Surya Permata and Terregra Asia
Can any of the company-specific risk be diversified away by investing in both Surya Permata and Terregra Asia 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 Terregra Asia 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 Terregra Asia Energy, you can compare the effects of market volatilities on Surya Permata and Terregra Asia 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 Terregra Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Permata and Terregra Asia.
Diversification Opportunities for Surya Permata and Terregra Asia
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Surya and Terregra is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Surya Permata Andalan and Terregra Asia Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terregra Asia Energy 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 Terregra Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terregra Asia Energy has no effect on the direction of Surya Permata i.e., Surya Permata and Terregra Asia go up and down completely randomly.
Pair Corralation between Surya Permata and Terregra Asia
Assuming the 90 days trading horizon Surya Permata Andalan is expected to generate 0.37 times more return on investment than Terregra Asia. However, Surya Permata Andalan is 2.73 times less risky than Terregra Asia. It trades about -0.05 of its potential returns per unit of risk. Terregra Asia Energy is currently generating about -0.13 per unit of risk. If you would invest 15,100 in Surya Permata Andalan on September 12, 2024 and sell it today you would lose (800.00) from holding Surya Permata Andalan or give up 5.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surya Permata Andalan vs. Terregra Asia Energy
Performance |
| Timeline |
| Surya Permata Andalan |
| Terregra Asia Energy |
Surya Permata and Terregra Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surya Permata and Terregra Asia
The main advantage of trading using opposite Surya Permata and Terregra Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Permata position performs unexpectedly, Terregra Asia 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 Terregra Asia will offset losses from the drop in Terregra Asia'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 |
| Terregra Asia vs. Kapuas Prima Coal | Terregra Asia vs. Cikarang Listrindo Tbk | Terregra Asia vs. PP Presisi Tbk | Terregra Asia vs. Alfa Energi Investama |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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