Correlation Between Surya Biru and Trimegah Karya
Can any of the company-specific risk be diversified away by investing in both Surya Biru and Trimegah Karya 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 Surya Biru and Trimegah Karya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surya Biru Murni and Trimegah Karya Pratama, you can compare the effects of market volatilities on Surya Biru and Trimegah Karya 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 Surya Biru with a short position of Trimegah Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Biru and Trimegah Karya.
Diversification Opportunities for Surya Biru and Trimegah Karya
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Surya and Trimegah is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Surya Biru Murni and Trimegah Karya Pratama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimegah Karya Pratama and Surya Biru 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 Surya Biru Murni are associated (or correlated) with Trimegah Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimegah Karya Pratama has no effect on the direction of Surya Biru i.e., Surya Biru and Trimegah Karya go up and down completely randomly.
Pair Corralation between Surya Biru and Trimegah Karya
Assuming the 90 days trading horizon Surya Biru Murni is expected to generate 0.34 times more return on investment than Trimegah Karya. However, Surya Biru Murni is 2.92 times less risky than Trimegah Karya. It trades about -0.11 of its potential returns per unit of risk. Trimegah Karya Pratama is currently generating about -0.17 per unit of risk. If you would invest 12,200 in Surya Biru Murni on November 3, 2024 and sell it today you would lose (200.00) from holding Surya Biru Murni or give up 1.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.74% |
| Values | Daily Returns |
Surya Biru Murni vs. Trimegah Karya Pratama
Performance |
| Timeline |
| Surya Biru Murni |
| Trimegah Karya Pratama |
Surya Biru and Trimegah Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surya Biru and Trimegah Karya
The main advantage of trading using opposite Surya Biru and Trimegah Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Biru position performs unexpectedly, Trimegah Karya 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 Trimegah Karya will offset losses from the drop in Trimegah Karya's long position.| Surya Biru vs. Indo Oil Perkasa | Surya Biru vs. Archi Indonesia Tbk | Surya Biru vs. Nusa Palapa Gemilang | Surya Biru vs. Obm Drilchem PT |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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