Correlation Between Petrosea Tbk and Surya Esa
Can any of the company-specific risk be diversified away by investing in both Petrosea Tbk and Surya Esa 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 Petrosea Tbk and Surya Esa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petrosea Tbk and Surya Esa Perkasa, you can compare the effects of market volatilities on Petrosea Tbk and Surya Esa 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 Petrosea Tbk with a short position of Surya Esa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrosea Tbk and Surya Esa.
Diversification Opportunities for Petrosea Tbk and Surya Esa
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Petrosea and Surya is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Petrosea Tbk and Surya Esa Perkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Esa Perkasa and Petrosea Tbk 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 Petrosea Tbk are associated (or correlated) with Surya Esa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Esa Perkasa has no effect on the direction of Petrosea Tbk i.e., Petrosea Tbk and Surya Esa go up and down completely randomly.
Pair Corralation between Petrosea Tbk and Surya Esa
Assuming the 90 days trading horizon Petrosea Tbk is expected to generate 2.52 times more return on investment than Surya Esa. However, Petrosea Tbk is 2.52 times more volatile than Surya Esa Perkasa. It trades about 0.37 of its potential returns per unit of risk. Surya Esa Perkasa is currently generating about 0.09 per unit of risk. If you would invest 280,000 in Petrosea Tbk on November 7, 2024 and sell it today you would earn a total of 106,000 from holding Petrosea Tbk or generate 37.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Petrosea Tbk vs. Surya Esa Perkasa
Performance |
| Timeline |
| Petrosea Tbk |
| Surya Esa Perkasa |
Petrosea Tbk and Surya Esa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petrosea Tbk and Surya Esa
The main advantage of trading using opposite Petrosea Tbk and Surya Esa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petrosea Tbk position performs unexpectedly, Surya Esa 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 Esa will offset losses from the drop in Surya Esa's long position.| Petrosea Tbk vs. Indika Energy Tbk | Petrosea Tbk vs. Harum Energy Tbk | Petrosea Tbk vs. Indo Tambangraya Megah | Petrosea Tbk vs. Gajah Tunggal Tbk |
| Surya Esa vs. Harum Energy Tbk | Surya Esa vs. Delta Dunia Makmur | Surya Esa vs. Adi Sarana Armada | Surya Esa 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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