Correlation Between Surya Citra and Protech Mitra
Can any of the company-specific risk be diversified away by investing in both Surya Citra and Protech Mitra 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 Protech Mitra 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 Protech Mitra Perkasa, you can compare the effects of market volatilities on Surya Citra and Protech Mitra 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 Protech Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Citra and Protech Mitra.
Diversification Opportunities for Surya Citra and Protech Mitra
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Surya and Protech is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Surya Citra Media and Protech Mitra Perkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protech Mitra Perkasa 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 Protech Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protech Mitra Perkasa has no effect on the direction of Surya Citra i.e., Surya Citra and Protech Mitra go up and down completely randomly.
Pair Corralation between Surya Citra and Protech Mitra
Assuming the 90 days trading horizon Surya Citra Media is expected to generate 1.08 times more return on investment than Protech Mitra. However, Surya Citra is 1.08 times more volatile than Protech Mitra Perkasa. It trades about 0.22 of its potential returns per unit of risk. Protech Mitra Perkasa is currently generating about -0.13 per unit of risk. If you would invest 17,900 in Surya Citra Media on November 28, 2024 and sell it today you would earn a total of 2,700 from holding Surya Citra Media or generate 15.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surya Citra Media vs. Protech Mitra Perkasa
Performance |
| Timeline |
| Surya Citra Media |
| Protech Mitra Perkasa |
Surya Citra and Protech Mitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surya Citra and Protech Mitra
The main advantage of trading using opposite Surya Citra and Protech Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Citra position performs unexpectedly, Protech Mitra 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 Protech Mitra will offset losses from the drop in Protech Mitra'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 |
| Protech Mitra vs. Pelayaran Nelly Dwi | Protech Mitra vs. Trans Power Marine | Protech Mitra vs. Sidomulyo Selaras Tbk | Protech Mitra vs. Bali Towerindo Sentra |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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