Correlation Between Satria Mega and PT Surya
Can any of the company-specific risk be diversified away by investing in both Satria Mega and PT Surya 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 Satria Mega and PT Surya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Satria Mega Kencana and PT Surya Pertiwi, you can compare the effects of market volatilities on Satria Mega and PT Surya 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 Satria Mega with a short position of PT Surya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Satria Mega and PT Surya.
Diversification Opportunities for Satria Mega and PT Surya
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Satria and SPTO is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Satria Mega Kencana and PT Surya Pertiwi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Surya Pertiwi and Satria Mega 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 Satria Mega Kencana are associated (or correlated) with PT Surya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Surya Pertiwi has no effect on the direction of Satria Mega i.e., Satria Mega and PT Surya go up and down completely randomly.
Pair Corralation between Satria Mega and PT Surya
Assuming the 90 days trading horizon Satria Mega Kencana is expected to generate 0.99 times more return on investment than PT Surya. However, Satria Mega Kencana is 1.01 times less risky than PT Surya. It trades about 0.09 of its potential returns per unit of risk. PT Surya Pertiwi is currently generating about -0.22 per unit of risk. If you would invest 30,400 in Satria Mega Kencana on November 28, 2024 and sell it today you would earn a total of 800.00 from holding Satria Mega Kencana or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Satria Mega Kencana vs. PT Surya Pertiwi
Performance |
| Timeline |
| Satria Mega Kencana |
| PT Surya Pertiwi |
Satria Mega and PT Surya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Satria Mega and PT Surya
The main advantage of trading using opposite Satria Mega and PT Surya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Satria Mega position performs unexpectedly, PT Surya 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 Surya will offset losses from the drop in PT Surya's long position.| Satria Mega vs. Shield On Service | Satria Mega vs. MNC Studios International | Satria Mega vs. Royal Prima PT | Satria Mega vs. Sanurhasta Mitra PT |
| PT Surya vs. PT Indonesia Kendaraan | PT Surya vs. Cikarang Listrindo Tbk | PT Surya vs. PT Sarimelati Kencana | PT Surya vs. Surya Toto 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |