Correlation Between Surya Semesta and Malindo Feedmill
Can any of the company-specific risk be diversified away by investing in both Surya Semesta and Malindo Feedmill 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 Malindo Feedmill 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 Malindo Feedmill Tbk, you can compare the effects of market volatilities on Surya Semesta and Malindo Feedmill 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 Malindo Feedmill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Semesta and Malindo Feedmill.
Diversification Opportunities for Surya Semesta and Malindo Feedmill
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Surya and Malindo is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Surya Semesta Internusa and Malindo Feedmill Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malindo Feedmill 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 Malindo Feedmill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malindo Feedmill Tbk has no effect on the direction of Surya Semesta i.e., Surya Semesta and Malindo Feedmill go up and down completely randomly.
Pair Corralation between Surya Semesta and Malindo Feedmill
Assuming the 90 days trading horizon Surya Semesta Internusa is expected to under-perform the Malindo Feedmill. But the stock apears to be less risky and, when comparing its historical volatility, Surya Semesta Internusa is 1.07 times less risky than Malindo Feedmill. The stock trades about -0.04 of its potential returns per unit of risk. The Malindo Feedmill Tbk is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 64,500 in Malindo Feedmill Tbk on August 30, 2024 and sell it today you would earn a total of 11,000 from holding Malindo Feedmill Tbk or generate 17.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surya Semesta Internusa vs. Malindo Feedmill Tbk
Performance |
| Timeline |
| Surya Semesta Internusa |
| Malindo Feedmill Tbk |
Surya Semesta and Malindo Feedmill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surya Semesta and Malindo Feedmill
The main advantage of trading using opposite Surya Semesta and Malindo Feedmill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Semesta position performs unexpectedly, Malindo Feedmill 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 Malindo Feedmill will offset losses from the drop in Malindo Feedmill'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 |
| Malindo Feedmill vs. Japfa Comfeed Indonesia | Malindo Feedmill vs. Charoen Pokphand Indonesia | Malindo Feedmill vs. Surya Semesta Internusa | Malindo Feedmill vs. Mitra Adiperkasa 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| 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 | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |