Correlation Between Surya Citra and Indosat Tbk
Can any of the company-specific risk be diversified away by investing in both Surya Citra and Indosat Tbk 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 Indosat Tbk 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 Indosat Tbk, you can compare the effects of market volatilities on Surya Citra and Indosat Tbk 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 Indosat Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Citra and Indosat Tbk.
Diversification Opportunities for Surya Citra and Indosat Tbk
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Surya and Indosat is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Surya Citra Media and Indosat Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indosat Tbk 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 Indosat Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indosat Tbk has no effect on the direction of Surya Citra i.e., Surya Citra and Indosat Tbk go up and down completely randomly.
Pair Corralation between Surya Citra and Indosat Tbk
Assuming the 90 days trading horizon Surya Citra Media is expected to generate 0.47 times more return on investment than Indosat Tbk. However, Surya Citra Media is 2.15 times less risky than Indosat Tbk. It trades about 0.0 of its potential returns per unit of risk. Indosat Tbk is currently generating about -0.05 per unit of risk. If you would invest 13,915 in Surya Citra Media on September 3, 2024 and sell it today you would lose (915.00) from holding Surya Citra Media or give up 6.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surya Citra Media vs. Indosat Tbk
Performance |
| Timeline |
| Surya Citra Media |
| Indosat Tbk |
Surya Citra and Indosat Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surya Citra and Indosat Tbk
The main advantage of trading using opposite Surya Citra and Indosat Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Citra position performs unexpectedly, Indosat Tbk 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 Indosat Tbk will offset losses from the drop in Indosat Tbk's long position.| Surya Citra vs. Indosat Tbk | Surya Citra vs. Energi Mega Persada | Surya Citra vs. Mitra Pinasthika Mustika | Surya Citra vs. Jakarta Int Hotels |
| Indosat Tbk vs. Astra Agro Lestari | Indosat Tbk vs. Vale Indonesia Tbk | Indosat Tbk vs. Timah Persero Tbk | Indosat Tbk vs. Medco Energi Internasional |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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