Correlation Between Super Energy and Tunas Baru
Can any of the company-specific risk be diversified away by investing in both Super Energy and Tunas Baru 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 Tunas Baru 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 Tunas Baru Lampung, you can compare the effects of market volatilities on Super Energy and Tunas Baru 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 Tunas Baru. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Energy and Tunas Baru.
Diversification Opportunities for Super Energy and Tunas Baru
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Super and Tunas is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Super Energy Tbk and Tunas Baru Lampung in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tunas Baru Lampung 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 Tunas Baru. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tunas Baru Lampung has no effect on the direction of Super Energy i.e., Super Energy and Tunas Baru go up and down completely randomly.
Pair Corralation between Super Energy and Tunas Baru
Assuming the 90 days trading horizon Super Energy Tbk is expected to generate 1.41 times more return on investment than Tunas Baru. However, Super Energy is 1.41 times more volatile than Tunas Baru Lampung. It trades about 0.05 of its potential returns per unit of risk. Tunas Baru Lampung is currently generating about 0.03 per unit of risk. If you would invest 173,000 in Super Energy Tbk on August 27, 2024 and sell it today you would earn a total of 63,000 from holding Super Energy Tbk or generate 36.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Energy Tbk vs. Tunas Baru Lampung
Performance |
| Timeline |
| Super Energy Tbk |
| Tunas Baru Lampung |
Super Energy and Tunas Baru Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Energy and Tunas Baru
The main advantage of trading using opposite Super Energy and Tunas Baru positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Energy position performs unexpectedly, Tunas Baru 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 Tunas Baru will offset losses from the drop in Tunas Baru's long position.| Super Energy vs. Petrosea Tbk | Super Energy vs. Harum Energy Tbk | Super Energy vs. Perdana Karya Perkasa | Super Energy vs. Samindo Resources 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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