Correlation Between Surya Citra and PT Sarana
Can any of the company-specific risk be diversified away by investing in both Surya Citra and PT Sarana 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 PT Sarana 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 PT Sarana Menara, you can compare the effects of market volatilities on Surya Citra and PT Sarana 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 PT Sarana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Citra and PT Sarana.
Diversification Opportunities for Surya Citra and PT Sarana
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Surya and TOWR is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Surya Citra Media and PT Sarana Menara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Sarana Menara 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 PT Sarana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Sarana Menara has no effect on the direction of Surya Citra i.e., Surya Citra and PT Sarana go up and down completely randomly.
Pair Corralation between Surya Citra and PT Sarana
Assuming the 90 days trading horizon Surya Citra Media is expected to generate 0.91 times more return on investment than PT Sarana. However, Surya Citra Media is 1.1 times less risky than PT Sarana. It trades about 0.14 of its potential returns per unit of risk. PT Sarana Menara is currently generating about 0.07 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surya Citra Media vs. PT Sarana Menara
Performance |
| Timeline |
| Surya Citra Media |
| PT Sarana Menara |
Surya Citra and PT Sarana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surya Citra and PT Sarana
The main advantage of trading using opposite Surya Citra and PT Sarana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Citra position performs unexpectedly, PT Sarana 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 PT Sarana will offset losses from the drop in PT Sarana'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 |
| PT Sarana vs. Tower Bersama Infrastructure | PT Sarana vs. Merdeka Copper Gold | PT Sarana vs. XL Axiata Tbk | PT Sarana vs. Japfa Comfeed Indonesia |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |