Correlation Between Surya Citra and HK Metals
Can any of the company-specific risk be diversified away by investing in both Surya Citra and HK Metals 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 HK Metals 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 HK Metals Utama, you can compare the effects of market volatilities on Surya Citra and HK Metals 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 HK Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Citra and HK Metals.
Diversification Opportunities for Surya Citra and HK Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Surya and HKMU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Surya Citra Media and HK Metals Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HK Metals Utama 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 HK Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HK Metals Utama has no effect on the direction of Surya Citra i.e., Surya Citra and HK Metals go up and down completely randomly.
Pair Corralation between Surya Citra and HK Metals
If you would invest 16,300 in Surya Citra Media on October 23, 2024 and sell it today you would earn a total of 1,500 from holding Surya Citra Media or generate 9.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surya Citra Media vs. HK Metals Utama
Performance |
| Timeline |
| Surya Citra Media |
| HK Metals Utama |
Surya Citra and HK Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surya Citra and HK Metals
The main advantage of trading using opposite Surya Citra and HK Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Citra position performs unexpectedly, HK Metals 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 HK Metals will offset losses from the drop in HK Metals' 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 |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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