Correlation Between Salim Ivomas and Surya Citra
Can any of the company-specific risk be diversified away by investing in both Salim Ivomas and Surya Citra 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 Salim Ivomas and Surya Citra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salim Ivomas Pratama and Surya Citra Media, you can compare the effects of market volatilities on Salim Ivomas and Surya Citra 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 Salim Ivomas with a short position of Surya Citra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salim Ivomas and Surya Citra.
Diversification Opportunities for Salim Ivomas and Surya Citra
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Salim and Surya is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Salim Ivomas Pratama and Surya Citra Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Citra Media and Salim Ivomas 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 Salim Ivomas Pratama are associated (or correlated) with Surya Citra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Citra Media has no effect on the direction of Salim Ivomas i.e., Salim Ivomas and Surya Citra go up and down completely randomly.
Pair Corralation between Salim Ivomas and Surya Citra
Assuming the 90 days trading horizon Salim Ivomas Pratama is expected to generate 0.48 times more return on investment than Surya Citra. However, Salim Ivomas Pratama is 2.09 times less risky than Surya Citra. It trades about 0.01 of its potential returns per unit of risk. Surya Citra Media is currently generating about -0.02 per unit of risk. If you would invest 39,398 in Salim Ivomas Pratama on August 27, 2024 and sell it today you would earn a total of 202.00 from holding Salim Ivomas Pratama or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salim Ivomas Pratama vs. Surya Citra Media
Performance |
| Timeline |
| Salim Ivomas Pratama |
| Surya Citra Media |
Salim Ivomas and Surya Citra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salim Ivomas and Surya Citra
The main advantage of trading using opposite Salim Ivomas and Surya Citra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salim Ivomas position performs unexpectedly, Surya Citra 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 Surya Citra will offset losses from the drop in Surya Citra's long position.The idea behind Salim Ivomas Pratama and Surya Citra Media pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Surya Citra vs. Mnc Land Tbk | Surya Citra vs. MNC Vision Networks | Surya Citra vs. Medikaloka Hermina 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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