Correlation Between Putra Rajawali and Surya Permata
Can any of the company-specific risk be diversified away by investing in both Putra Rajawali and Surya Permata 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 Putra Rajawali and Surya Permata into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putra Rajawali Kencana and Surya Permata Andalan, you can compare the effects of market volatilities on Putra Rajawali and Surya Permata 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 Putra Rajawali with a short position of Surya Permata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putra Rajawali and Surya Permata.
Diversification Opportunities for Putra Rajawali and Surya Permata
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Putra and Surya is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Putra Rajawali Kencana and Surya Permata Andalan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Permata Andalan and Putra Rajawali 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 Putra Rajawali Kencana are associated (or correlated) with Surya Permata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Permata Andalan has no effect on the direction of Putra Rajawali i.e., Putra Rajawali and Surya Permata go up and down completely randomly.
Pair Corralation between Putra Rajawali and Surya Permata
Assuming the 90 days trading horizon Putra Rajawali Kencana is expected to under-perform the Surya Permata. In addition to that, Putra Rajawali is 2.99 times more volatile than Surya Permata Andalan. It trades about -0.16 of its total potential returns per unit of risk. Surya Permata Andalan is currently generating about 0.01 per unit of volatility. If you would invest 14,100 in Surya Permata Andalan on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Surya Permata Andalan or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putra Rajawali Kencana vs. Surya Permata Andalan
Performance |
| Timeline |
| Putra Rajawali Kencana |
| Surya Permata Andalan |
Putra Rajawali and Surya Permata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putra Rajawali and Surya Permata
The main advantage of trading using opposite Putra Rajawali and Surya Permata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putra Rajawali position performs unexpectedly, Surya Permata 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 Permata will offset losses from the drop in Surya Permata's long position.| Putra Rajawali vs. PT Trimuda Nuansa | Putra Rajawali vs. Yelooo Integra Datanet | Putra Rajawali vs. Transcoal Pacific Tbk | Putra Rajawali vs. Weha Transportasi Indonesia |
| Surya Permata vs. Campina Ice Cream | Surya Permata vs. Mitra Pinasthika Mustika | Surya Permata vs. Jakarta Int Hotels | Surya Permata vs. Indosat 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |