Correlation Between Surya Citra and Dunia Virtual
Can any of the company-specific risk be diversified away by investing in both Surya Citra and Dunia Virtual 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 Citra and Dunia Virtual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surya Citra Media and Dunia Virtual Online, you can compare the effects of market volatilities on Surya Citra and Dunia Virtual 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 Citra with a short position of Dunia Virtual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Citra and Dunia Virtual.
Diversification Opportunities for Surya Citra and Dunia Virtual
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Surya and Dunia is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Surya Citra Media and Dunia Virtual Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunia Virtual Online and Surya Citra 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 Citra Media are associated (or correlated) with Dunia Virtual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunia Virtual Online has no effect on the direction of Surya Citra i.e., Surya Citra and Dunia Virtual go up and down completely randomly.
Pair Corralation between Surya Citra and Dunia Virtual
Assuming the 90 days trading horizon Surya Citra Media is expected to generate 1.39 times more return on investment than Dunia Virtual. However, Surya Citra is 1.39 times more volatile than Dunia Virtual Online. It trades about 0.14 of its potential returns per unit of risk. Dunia Virtual Online is currently generating about 0.03 per unit of risk. If you would invest 16,700 in Surya Citra Media on November 3, 2024 and sell it today you would earn a total of 1,400 from holding Surya Citra Media or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surya Citra Media vs. Dunia Virtual Online
Performance |
| Timeline |
| Surya Citra Media |
| Dunia Virtual Online |
Surya Citra and Dunia Virtual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surya Citra and Dunia Virtual
The main advantage of trading using opposite Surya Citra and Dunia Virtual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Citra position performs unexpectedly, Dunia Virtual 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 Dunia Virtual will offset losses from the drop in Dunia Virtual's long position.| Surya Citra vs. Media Nusantara Citra | Surya Citra vs. Matahari Department Store | Surya Citra vs. Akr Corporindo Tbk | Surya Citra vs. XL Axiata Tbk |
| Dunia Virtual vs. Galva Technologies Tbk | Dunia Virtual vs. Digital Mediatama Maxima | Dunia Virtual vs. Chandra Asri Petrochemical | Dunia Virtual vs. Indosterling Technomedia 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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