Correlation Between Rukun Raharja and Surya Semesta
Can any of the company-specific risk be diversified away by investing in both Rukun Raharja and Surya Semesta 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 Rukun Raharja and Surya Semesta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rukun Raharja Tbk and Surya Semesta Internusa, you can compare the effects of market volatilities on Rukun Raharja and Surya Semesta 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 Rukun Raharja with a short position of Surya Semesta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rukun Raharja and Surya Semesta.
Diversification Opportunities for Rukun Raharja and Surya Semesta
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rukun and Surya is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Rukun Raharja Tbk and Surya Semesta Internusa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Semesta Internusa and Rukun Raharja 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 Rukun Raharja Tbk are associated (or correlated) with Surya Semesta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Semesta Internusa has no effect on the direction of Rukun Raharja i.e., Rukun Raharja and Surya Semesta go up and down completely randomly.
Pair Corralation between Rukun Raharja and Surya Semesta
Assuming the 90 days trading horizon Rukun Raharja Tbk is expected to generate 2.77 times more return on investment than Surya Semesta. However, Rukun Raharja is 2.77 times more volatile than Surya Semesta Internusa. It trades about 0.23 of its potential returns per unit of risk. Surya Semesta Internusa is currently generating about -0.34 per unit of risk. If you would invest 173,500 in Rukun Raharja Tbk on August 29, 2024 and sell it today you would earn a total of 60,500 from holding Rukun Raharja Tbk or generate 34.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rukun Raharja Tbk vs. Surya Semesta Internusa
Performance |
| Timeline |
| Rukun Raharja Tbk |
| Surya Semesta Internusa |
Rukun Raharja and Surya Semesta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rukun Raharja and Surya Semesta
The main advantage of trading using opposite Rukun Raharja and Surya Semesta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rukun Raharja position performs unexpectedly, Surya Semesta 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 Semesta will offset losses from the drop in Surya Semesta's long position.| Rukun Raharja vs. Nusantara Infrastructure Tbk | Rukun Raharja vs. Panin Financial Tbk | Rukun Raharja vs. Ramayana Lestari Sentosa | Rukun Raharja vs. Kawasan Industri Jababeka |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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