Correlation Between Suryamas Dutamakmur and Jaya Sukses
Can any of the company-specific risk be diversified away by investing in both Suryamas Dutamakmur and Jaya Sukses 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 Jaya Sukses 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 Jaya Sukses Makmur, you can compare the effects of market volatilities on Suryamas Dutamakmur and Jaya Sukses 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 Jaya Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suryamas Dutamakmur and Jaya Sukses.
Diversification Opportunities for Suryamas Dutamakmur and Jaya Sukses
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Suryamas and Jaya is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Suryamas Dutamakmur Tbk and Jaya Sukses Makmur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaya Sukses Makmur 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 Jaya Sukses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaya Sukses Makmur has no effect on the direction of Suryamas Dutamakmur i.e., Suryamas Dutamakmur and Jaya Sukses go up and down completely randomly.
Pair Corralation between Suryamas Dutamakmur and Jaya Sukses
Assuming the 90 days trading horizon Suryamas Dutamakmur Tbk is expected to generate 13.63 times more return on investment than Jaya Sukses. However, Suryamas Dutamakmur is 13.63 times more volatile than Jaya Sukses Makmur. It trades about 0.29 of its potential returns per unit of risk. Jaya Sukses Makmur is currently generating about 0.19 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. Jaya Sukses Makmur
Performance |
| Timeline |
| Suryamas Dutamakmur Tbk |
| Jaya Sukses Makmur |
Suryamas Dutamakmur and Jaya Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suryamas Dutamakmur and Jaya Sukses
The main advantage of trading using opposite Suryamas Dutamakmur and Jaya Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suryamas Dutamakmur position performs unexpectedly, Jaya Sukses 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 Jaya Sukses will offset losses from the drop in Jaya Sukses' 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 |
| Jaya Sukses vs. Pollux Properti Indonesia | Jaya Sukses vs. MNC Studios International | Jaya Sukses vs. MAP Aktif Adiperkasa | Jaya Sukses vs. Trimitra Propertindo 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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