Correlation Between Suryamas Dutamakmur and Modernland Realty
Can any of the company-specific risk be diversified away by investing in both Suryamas Dutamakmur and Modernland Realty 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 Suryamas Dutamakmur and Modernland Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suryamas Dutamakmur Tbk and Modernland Realty Ltd, you can compare the effects of market volatilities on Suryamas Dutamakmur and Modernland Realty 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 Suryamas Dutamakmur with a short position of Modernland Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suryamas Dutamakmur and Modernland Realty.
Diversification Opportunities for Suryamas Dutamakmur and Modernland Realty
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suryamas and Modernland is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Suryamas Dutamakmur Tbk and Modernland Realty Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modernland Realty and Suryamas Dutamakmur 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 Suryamas Dutamakmur Tbk are associated (or correlated) with Modernland Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modernland Realty has no effect on the direction of Suryamas Dutamakmur i.e., Suryamas Dutamakmur and Modernland Realty go up and down completely randomly.
Pair Corralation between Suryamas Dutamakmur and Modernland Realty
Assuming the 90 days trading horizon Suryamas Dutamakmur Tbk is expected to generate 1.47 times more return on investment than Modernland Realty. However, Suryamas Dutamakmur is 1.47 times more volatile than Modernland Realty Ltd. It trades about 0.29 of its potential returns per unit of risk. Modernland Realty Ltd is currently generating about 0.03 per unit of risk. If you would invest 16,800 in Suryamas Dutamakmur Tbk on August 30, 2024 and sell it today you would earn a total of 35,200 from holding Suryamas Dutamakmur Tbk or generate 209.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suryamas Dutamakmur Tbk vs. Modernland Realty Ltd
Performance |
| Timeline |
| Suryamas Dutamakmur Tbk |
| Modernland Realty |
Suryamas Dutamakmur and Modernland Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suryamas Dutamakmur and Modernland Realty
The main advantage of trading using opposite Suryamas Dutamakmur and Modernland Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suryamas Dutamakmur position performs unexpectedly, Modernland Realty 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 Modernland Realty will offset losses from the drop in Modernland Realty's long position.| Suryamas Dutamakmur vs. Pikko Land Development | Suryamas Dutamakmur vs. Ristia Bintang Mahkotasejati | Suryamas Dutamakmur vs. Pudjiadi Prestige Tbk | Suryamas Dutamakmur vs. Indonesia Prima Property |
| Modernland Realty vs. Kawasan Industri Jababeka | Modernland Realty vs. Lippo Cikarang Tbk | Modernland Realty vs. Sentul City Tbk | Modernland Realty vs. Lippo Karawaci Tbk |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |