Correlation Between Personel Alih and PT Surya
Can any of the company-specific risk be diversified away by investing in both Personel Alih and PT Surya 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 Personel Alih and PT Surya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Personel Alih Daya and PT Surya Pertiwi, you can compare the effects of market volatilities on Personel Alih and PT Surya 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 Personel Alih with a short position of PT Surya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Personel Alih and PT Surya.
Diversification Opportunities for Personel Alih and PT Surya
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Personel and SPTO is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Personel Alih Daya and PT Surya Pertiwi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Surya Pertiwi and Personel Alih 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 Personel Alih Daya are associated (or correlated) with PT Surya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Surya Pertiwi has no effect on the direction of Personel Alih i.e., Personel Alih and PT Surya go up and down completely randomly.
Pair Corralation between Personel Alih and PT Surya
Assuming the 90 days trading horizon Personel Alih Daya is expected to generate 3.01 times more return on investment than PT Surya. However, Personel Alih is 3.01 times more volatile than PT Surya Pertiwi. It trades about 0.02 of its potential returns per unit of risk. PT Surya Pertiwi is currently generating about -0.22 per unit of risk. If you would invest 1,300 in Personel Alih Daya on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Personel Alih Daya or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Personel Alih Daya vs. PT Surya Pertiwi
Performance |
| Timeline |
| Personel Alih Daya |
| PT Surya Pertiwi |
Personel Alih and PT Surya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Personel Alih and PT Surya
The main advantage of trading using opposite Personel Alih and PT Surya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Personel Alih position performs unexpectedly, PT Surya 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 PT Surya will offset losses from the drop in PT Surya's long position.| Personel Alih vs. Optima Prima Metal | Personel Alih vs. Inocycle Technology Tbk | Personel Alih vs. Eastparc Hotel Tbk | Personel Alih vs. Humpuss Intermoda Transportasi |
| PT Surya vs. PT Indonesia Kendaraan | PT Surya vs. Cikarang Listrindo Tbk | PT Surya vs. PT Sarimelati Kencana | PT Surya vs. Surya Toto Indonesia |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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