Correlation Between Surya Citra and Link Net
Can any of the company-specific risk be diversified away by investing in both Surya Citra and Link Net 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 Link Net 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 Link Net Tbk, you can compare the effects of market volatilities on Surya Citra and Link Net 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 Link Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Citra and Link Net.
Diversification Opportunities for Surya Citra and Link Net
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Surya and Link is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Surya Citra Media and Link Net Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Link Net 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 Link Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Link Net Tbk has no effect on the direction of Surya Citra i.e., Surya Citra and Link Net go up and down completely randomly.
Pair Corralation between Surya Citra and Link Net
Assuming the 90 days trading horizon Surya Citra Media is expected to under-perform the Link Net. But the stock apears to be less risky and, when comparing its historical volatility, Surya Citra Media is 1.88 times less risky than Link Net. The stock trades about -0.02 of its potential returns per unit of risk. The Link Net Tbk is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 106,500 in Link Net Tbk on September 1, 2024 and sell it today you would earn a total of 16,500 from holding Link Net Tbk or generate 15.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surya Citra Media vs. Link Net Tbk
Performance |
| Timeline |
| Surya Citra Media |
| Link Net Tbk |
Surya Citra and Link Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surya Citra and Link Net
The main advantage of trading using opposite Surya Citra and Link Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Citra position performs unexpectedly, Link Net 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 Link Net will offset losses from the drop in Link Net'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 |
| Link Net vs. Mitra Keluarga Karyasehat | Link Net vs. Surya Citra Media | Link Net vs. Matahari Department Store | Link Net vs. Puradelta Lestari PT |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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