Correlation Between Surya Semesta and Ultra Jaya
Can any of the company-specific risk be diversified away by investing in both Surya Semesta and Ultra Jaya 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 Ultra Jaya 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 Ultra Jaya Milk, you can compare the effects of market volatilities on Surya Semesta and Ultra Jaya 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 Ultra Jaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Semesta and Ultra Jaya.
Diversification Opportunities for Surya Semesta and Ultra Jaya
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Surya and Ultra is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Surya Semesta Internusa and Ultra Jaya Milk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultra Jaya Milk 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 Ultra Jaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultra Jaya Milk has no effect on the direction of Surya Semesta i.e., Surya Semesta and Ultra Jaya go up and down completely randomly.
Pair Corralation between Surya Semesta and Ultra Jaya
Assuming the 90 days trading horizon Surya Semesta Internusa is expected to generate 1.92 times more return on investment than Ultra Jaya. However, Surya Semesta is 1.92 times more volatile than Ultra Jaya Milk. It trades about 0.11 of its potential returns per unit of risk. Ultra Jaya Milk is currently generating about 0.02 per unit of risk. If you would invest 40,559 in Surya Semesta Internusa on August 25, 2024 and sell it today you would earn a total of 53,941 from holding Surya Semesta Internusa or generate 132.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surya Semesta Internusa vs. Ultra Jaya Milk
Performance |
| Timeline |
| Surya Semesta Internusa |
| Ultra Jaya Milk |
Surya Semesta and Ultra Jaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surya Semesta and Ultra Jaya
The main advantage of trading using opposite Surya Semesta and Ultra Jaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Semesta position performs unexpectedly, Ultra Jaya 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 Ultra Jaya will offset losses from the drop in Ultra Jaya's long position.| Surya Semesta vs. Samudera Indonesia Tbk | Surya Semesta vs. Rukun Raharja Tbk | Surya Semesta vs. PT Temas Tbk | Surya Semesta vs. Weha Transportasi Indonesia |
| Ultra Jaya vs. Mayora Indah Tbk | Ultra Jaya vs. Sido Muncul PT | Ultra Jaya vs. Indofood Cbp Sukses | Ultra Jaya vs. Ace Hardware 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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