Correlation Between Surya Semesta and Acset Indonusa
Can any of the company-specific risk be diversified away by investing in both Surya Semesta and Acset Indonusa 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 Surya Semesta and Acset Indonusa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surya Semesta Internusa and Acset Indonusa Tbk, you can compare the effects of market volatilities on Surya Semesta and Acset Indonusa 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 Surya Semesta with a short position of Acset Indonusa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Semesta and Acset Indonusa.
Diversification Opportunities for Surya Semesta and Acset Indonusa
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Surya and Acset is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Surya Semesta Internusa and Acset Indonusa Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acset Indonusa Tbk and Surya Semesta 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 Surya Semesta Internusa are associated (or correlated) with Acset Indonusa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acset Indonusa Tbk has no effect on the direction of Surya Semesta i.e., Surya Semesta and Acset Indonusa go up and down completely randomly.
Pair Corralation between Surya Semesta and Acset Indonusa
Assuming the 90 days trading horizon Surya Semesta Internusa is expected to generate 2.21 times more return on investment than Acset Indonusa. However, Surya Semesta is 2.21 times more volatile than Acset Indonusa Tbk. It trades about 0.03 of its potential returns per unit of risk. Acset Indonusa Tbk is currently generating about -0.12 per unit of risk. If you would invest 97,500 in Surya Semesta Internusa on November 3, 2024 and sell it today you would earn a total of 2,000 from holding Surya Semesta Internusa or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.37% |
| Values | Daily Returns |
Surya Semesta Internusa vs. Acset Indonusa Tbk
Performance |
| Timeline |
| Surya Semesta Internusa |
| Acset Indonusa Tbk |
Surya Semesta and Acset Indonusa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surya Semesta and Acset Indonusa
The main advantage of trading using opposite Surya Semesta and Acset Indonusa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Semesta position performs unexpectedly, Acset Indonusa 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 Acset Indonusa will offset losses from the drop in Acset Indonusa's long position.| Surya Semesta vs. Summarecon Agung Tbk | Surya Semesta vs. Lippo Cikarang Tbk | Surya Semesta vs. Alam Sutera Realty | Surya Semesta vs. Lippo Karawaci Tbk |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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