Correlation Between Trias Sentosa and Surya Toto
Can any of the company-specific risk be diversified away by investing in both Trias Sentosa and Surya Toto 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 Trias Sentosa and Surya Toto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trias Sentosa Tbk and Surya Toto Indonesia, you can compare the effects of market volatilities on Trias Sentosa and Surya Toto 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 Trias Sentosa with a short position of Surya Toto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trias Sentosa and Surya Toto.
Diversification Opportunities for Trias Sentosa and Surya Toto
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Trias and Surya is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Trias Sentosa Tbk and Surya Toto Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Toto Indonesia and Trias Sentosa 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 Trias Sentosa Tbk are associated (or correlated) with Surya Toto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Toto Indonesia has no effect on the direction of Trias Sentosa i.e., Trias Sentosa and Surya Toto go up and down completely randomly.
Pair Corralation between Trias Sentosa and Surya Toto
Assuming the 90 days trading horizon Trias Sentosa Tbk is expected to under-perform the Surya Toto. In addition to that, Trias Sentosa is 2.79 times more volatile than Surya Toto Indonesia. It trades about -0.02 of its total potential returns per unit of risk. Surya Toto Indonesia is currently generating about 0.04 per unit of volatility. If you would invest 19,762 in Surya Toto Indonesia on August 29, 2024 and sell it today you would earn a total of 2,838 from holding Surya Toto Indonesia or generate 14.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trias Sentosa Tbk vs. Surya Toto Indonesia
Performance |
| Timeline |
| Trias Sentosa Tbk |
| Surya Toto Indonesia |
Trias Sentosa and Surya Toto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trias Sentosa and Surya Toto
The main advantage of trading using opposite Trias Sentosa and Surya Toto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trias Sentosa position performs unexpectedly, Surya Toto 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 Surya Toto will offset losses from the drop in Surya Toto's long position.| Trias Sentosa vs. Kedaung Indah Can | Trias Sentosa vs. Langgeng Makmur Industri | Trias Sentosa vs. Kabelindo Murni Tbk | Trias Sentosa vs. Mustika Ratu 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |