Correlation Between Super Energy and Sido Muncul
Can any of the company-specific risk be diversified away by investing in both Super Energy and Sido Muncul 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 Super Energy and Sido Muncul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Super Energy Tbk and Sido Muncul PT, you can compare the effects of market volatilities on Super Energy and Sido Muncul 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 Super Energy with a short position of Sido Muncul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Energy and Sido Muncul.
Diversification Opportunities for Super Energy and Sido Muncul
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Super and Sido is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Super Energy Tbk and Sido Muncul PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sido Muncul PT and Super Energy 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 Super Energy Tbk are associated (or correlated) with Sido Muncul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sido Muncul PT has no effect on the direction of Super Energy i.e., Super Energy and Sido Muncul go up and down completely randomly.
Pair Corralation between Super Energy and Sido Muncul
Assuming the 90 days trading horizon Super Energy Tbk is expected to generate 2.55 times more return on investment than Sido Muncul. However, Super Energy is 2.55 times more volatile than Sido Muncul PT. It trades about 0.03 of its potential returns per unit of risk. Sido Muncul PT is currently generating about -0.07 per unit of risk. If you would invest 230,000 in Super Energy Tbk on September 1, 2024 and sell it today you would earn a total of 1,000.00 from holding Super Energy Tbk or generate 0.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Energy Tbk vs. Sido Muncul PT
Performance |
| Timeline |
| Super Energy Tbk |
| Sido Muncul PT |
Super Energy and Sido Muncul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Energy and Sido Muncul
The main advantage of trading using opposite Super Energy and Sido Muncul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Energy position performs unexpectedly, Sido Muncul 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 Sido Muncul will offset losses from the drop in Sido Muncul's long position.| Super Energy vs. Mitrabahtera Segara Sejati | Super Energy vs. Weha Transportasi Indonesia | Super Energy vs. Rig Tenders Tbk | Super Energy vs. Rukun Raharja Tbk |
| Sido Muncul vs. Indofood Cbp Sukses | Sido Muncul vs. Mayora Indah Tbk | Sido Muncul vs. Bank Pembangunan Timur | Sido Muncul vs. Pakuwon Jati 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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