Correlation Between Suryamas Dutamakmur and Pollux Investasi
Can any of the company-specific risk be diversified away by investing in both Suryamas Dutamakmur and Pollux Investasi 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 Pollux Investasi 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 Pollux Investasi Internasional, you can compare the effects of market volatilities on Suryamas Dutamakmur and Pollux Investasi 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 Pollux Investasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suryamas Dutamakmur and Pollux Investasi.
Diversification Opportunities for Suryamas Dutamakmur and Pollux Investasi
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Suryamas and Pollux is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Suryamas Dutamakmur Tbk and Pollux Investasi Internasional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pollux Investasi Int 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 Pollux Investasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pollux Investasi Int has no effect on the direction of Suryamas Dutamakmur i.e., Suryamas Dutamakmur and Pollux Investasi go up and down completely randomly.
Pair Corralation between Suryamas Dutamakmur and Pollux Investasi
Assuming the 90 days trading horizon Suryamas Dutamakmur Tbk is expected to generate 1.27 times more return on investment than Pollux Investasi. However, Suryamas Dutamakmur is 1.27 times more volatile than Pollux Investasi Internasional. It trades about 0.29 of its potential returns per unit of risk. Pollux Investasi Internasional is currently generating about 0.05 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suryamas Dutamakmur Tbk vs. Pollux Investasi Internasional
Performance |
| Timeline |
| Suryamas Dutamakmur Tbk |
| Pollux Investasi Int |
Suryamas Dutamakmur and Pollux Investasi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suryamas Dutamakmur and Pollux Investasi
The main advantage of trading using opposite Suryamas Dutamakmur and Pollux Investasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suryamas Dutamakmur position performs unexpectedly, Pollux Investasi 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 Pollux Investasi will offset losses from the drop in Pollux Investasi'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 |
| Pollux Investasi vs. Pollux Properti Indonesia | Pollux Investasi vs. Maha Properti Indonesia | Pollux Investasi vs. Mega Manunggal Property | Pollux Investasi vs. Urban Jakarta Propertindo |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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