Correlation Between PT Surya and Charnic Capital
Can any of the company-specific risk be diversified away by investing in both PT Surya and Charnic Capital 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 PT Surya and Charnic Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Surya Pertiwi and Charnic Capital Tbk, you can compare the effects of market volatilities on PT Surya and Charnic Capital 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 PT Surya with a short position of Charnic Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Surya and Charnic Capital.
Diversification Opportunities for PT Surya and Charnic Capital
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPTO and Charnic is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding PT Surya Pertiwi and Charnic Capital Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charnic Capital Tbk and PT Surya 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 PT Surya Pertiwi are associated (or correlated) with Charnic Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charnic Capital Tbk has no effect on the direction of PT Surya i.e., PT Surya and Charnic Capital go up and down completely randomly.
Pair Corralation between PT Surya and Charnic Capital
Assuming the 90 days trading horizon PT Surya Pertiwi is expected to generate 0.29 times more return on investment than Charnic Capital. However, PT Surya Pertiwi is 3.51 times less risky than Charnic Capital. It trades about 0.3 of its potential returns per unit of risk. Charnic Capital Tbk is currently generating about 0.03 per unit of risk. If you would invest 58,239 in PT Surya Pertiwi on September 4, 2024 and sell it today you would earn a total of 4,761 from holding PT Surya Pertiwi or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Surya Pertiwi vs. Charnic Capital Tbk
Performance |
| Timeline |
| PT Surya Pertiwi |
| Charnic Capital Tbk |
PT Surya and Charnic Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Surya and Charnic Capital
The main advantage of trading using opposite PT Surya and Charnic Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Surya position performs unexpectedly, Charnic Capital 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 Charnic Capital will offset losses from the drop in Charnic Capital's long position.| PT Surya vs. PT Indonesia Kendaraan | PT Surya vs. Cikarang Listrindo Tbk | PT Surya vs. PT Sarimelati Kencana | PT Surya vs. Surya Toto Indonesia |
| Charnic Capital vs. Mitra Pinasthika Mustika | Charnic Capital vs. Jakarta Int Hotels | Charnic Capital vs. Asuransi Harta Aman | Charnic Capital vs. Indosterling Technomedia 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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