Correlation Between Bukit Asam and Surya Toto
Can any of the company-specific risk be diversified away by investing in both Bukit Asam and Surya Toto 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 Bukit Asam and Surya Toto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bukit Asam Tbk and Surya Toto Indonesia, you can compare the effects of market volatilities on Bukit Asam and Surya Toto 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 Bukit Asam with a short position of Surya Toto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bukit Asam and Surya Toto.
Diversification Opportunities for Bukit Asam and Surya Toto
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bukit and Surya is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bukit Asam Tbk and Surya Toto Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Toto Indonesia and Bukit Asam 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 Bukit Asam Tbk are associated (or correlated) with Surya Toto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Toto Indonesia has no effect on the direction of Bukit Asam i.e., Bukit Asam and Surya Toto go up and down completely randomly.
Pair Corralation between Bukit Asam and Surya Toto
Assuming the 90 days trading horizon Bukit Asam Tbk is expected to under-perform the Surya Toto. In addition to that, Bukit Asam is 1.13 times more volatile than Surya Toto Indonesia. It trades about -0.09 of its total potential returns per unit of risk. Surya Toto Indonesia is currently generating about 0.23 per unit of volatility. If you would invest 21,071 in Surya Toto Indonesia on August 29, 2024 and sell it today you would earn a total of 1,529 from holding Surya Toto Indonesia or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bukit Asam Tbk vs. Surya Toto Indonesia
Performance |
| Timeline |
| Bukit Asam Tbk |
| Surya Toto Indonesia |
Bukit Asam and Surya Toto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bukit Asam and Surya Toto
The main advantage of trading using opposite Bukit Asam and Surya Toto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bukit Asam position performs unexpectedly, Surya Toto 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 Surya Toto will offset losses from the drop in Surya Toto's long position.| Bukit Asam vs. Perusahaan Gas Negara | Bukit Asam vs. Indo Tambangraya Megah | Bukit Asam vs. Aneka Tambang Persero | Bukit Asam vs. Adaro Energy Tbk |
| Surya Toto vs. Unggul Indah Cahaya | Surya Toto vs. Tembaga Mulia Semanan | Surya Toto vs. PT Mulia Industrindo | Surya Toto vs. Trias Sentosa Tbk |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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