Correlation Between Suparma Tbk and Unggul Indah
Can any of the company-specific risk be diversified away by investing in both Suparma Tbk and Unggul Indah 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 Unggul Indah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suparma Tbk and Unggul Indah Cahaya, you can compare the effects of market volatilities on Suparma Tbk and Unggul Indah 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 Unggul Indah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suparma Tbk and Unggul Indah.
Diversification Opportunities for Suparma Tbk and Unggul Indah
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suparma and Unggul is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Suparma Tbk and Unggul Indah Cahaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unggul Indah Cahaya 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 Unggul Indah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unggul Indah Cahaya has no effect on the direction of Suparma Tbk i.e., Suparma Tbk and Unggul Indah go up and down completely randomly.
Pair Corralation between Suparma Tbk and Unggul Indah
Assuming the 90 days trading horizon Suparma Tbk is expected to under-perform the Unggul Indah. In addition to that, Suparma Tbk is 2.55 times more volatile than Unggul Indah Cahaya. It trades about -0.24 of its total potential returns per unit of risk. Unggul Indah Cahaya is currently generating about -0.3 per unit of volatility. If you would invest 820,000 in Unggul Indah Cahaya on August 29, 2024 and sell it today you would lose (25,000) from holding Unggul Indah Cahaya or give up 3.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suparma Tbk vs. Unggul Indah Cahaya
Performance |
| Timeline |
| Suparma Tbk |
| Unggul Indah Cahaya |
Suparma Tbk and Unggul Indah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suparma Tbk and Unggul Indah
The main advantage of trading using opposite Suparma Tbk and Unggul Indah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suparma Tbk position performs unexpectedly, Unggul Indah 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 Unggul Indah will offset losses from the drop in Unggul Indah's long position.| Suparma Tbk vs. Trias Sentosa Tbk | Suparma Tbk vs. Slj Global Tbk | Suparma Tbk vs. PT Sreeya Sewu | Suparma Tbk vs. Indo Acidatama Tbk |
| Unggul Indah vs. Kedaung Indah Can | Unggul Indah vs. Langgeng Makmur Industri | Unggul Indah vs. Kabelindo Murni Tbk | Unggul Indah vs. Mustika Ratu 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |