Correlation Between Suparma Tbk and Surya Toto
Can any of the company-specific risk be diversified away by investing in both Suparma Tbk and Surya Toto 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 Suparma Tbk and Surya Toto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suparma Tbk and Surya Toto Indonesia, you can compare the effects of market volatilities on Suparma Tbk and Surya Toto 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 Suparma Tbk with a short position of Surya Toto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suparma Tbk and Surya Toto.
Diversification Opportunities for Suparma Tbk and Surya Toto
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Suparma and Surya is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Suparma Tbk and Surya Toto Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Toto Indonesia and Suparma Tbk 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 Suparma Tbk are associated (or correlated) with Surya Toto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Toto Indonesia has no effect on the direction of Suparma Tbk i.e., Suparma Tbk and Surya Toto go up and down completely randomly.
Pair Corralation between Suparma Tbk and Surya Toto
Assuming the 90 days trading horizon Suparma Tbk is expected to under-perform the Surya Toto. In addition to that, Suparma Tbk is 1.58 times more volatile than Surya Toto Indonesia. It trades about -0.03 of its total potential returns per unit of risk. Surya Toto Indonesia is currently generating about 0.04 per unit of volatility. If you would invest 20,461 in Surya Toto Indonesia on August 25, 2024 and sell it today you would earn a total of 1,939 from holding Surya Toto Indonesia or generate 9.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suparma Tbk vs. Surya Toto Indonesia
Performance |
| Timeline |
| Suparma Tbk |
| Surya Toto Indonesia |
Suparma Tbk and Surya Toto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suparma Tbk and Surya Toto
The main advantage of trading using opposite Suparma Tbk and Surya Toto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suparma Tbk position performs unexpectedly, Surya Toto 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 Toto will offset losses from the drop in Surya Toto's long position.| Suparma Tbk vs. Kedaung Indah Can | Suparma Tbk vs. Langgeng Makmur Industri | Suparma Tbk vs. Kabelindo Murni Tbk | Suparma Tbk vs. Mustika Ratu Tbk |
| Surya Toto vs. Samudera Indonesia Tbk | Surya Toto vs. Rukun Raharja Tbk | Surya Toto vs. PT Temas Tbk | Surya Toto vs. Weha Transportasi 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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