Correlation Between Visa and Surya Esa
Can any of the company-specific risk be diversified away by investing in both Visa and Surya Esa 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 Visa and Surya Esa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Surya Esa Perkasa, you can compare the effects of market volatilities on Visa and Surya Esa 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 Visa with a short position of Surya Esa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Surya Esa.
Diversification Opportunities for Visa and Surya Esa
Good diversification
The 3 months correlation between Visa and Surya is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Surya Esa Perkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Esa Perkasa and Visa 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 Visa Class A are associated (or correlated) with Surya Esa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Esa Perkasa has no effect on the direction of Visa i.e., Visa and Surya Esa go up and down completely randomly.
Pair Corralation between Visa and Surya Esa
Taking into account the 90-day investment horizon Visa is expected to generate 1.57 times less return on investment than Surya Esa. But when comparing it to its historical volatility, Visa Class A is 3.25 times less risky than Surya Esa. It trades about 0.08 of its potential returns per unit of risk. Surya Esa Perkasa is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 62,523 in Surya Esa Perkasa on August 28, 2024 and sell it today you would earn a total of 19,477 from holding Surya Esa Perkasa or generate 31.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.76% |
| Values | Daily Returns |
Visa Class A vs. Surya Esa Perkasa
Performance |
| Timeline |
| Visa Class A |
| Surya Esa Perkasa |
Visa and Surya Esa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Surya Esa
The main advantage of trading using opposite Visa and Surya Esa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Surya Esa 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 Esa will offset losses from the drop in Surya Esa's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| Surya Esa vs. Harum Energy Tbk | Surya Esa vs. Delta Dunia Makmur | Surya Esa vs. Adi Sarana Armada | Surya Esa vs. Elang Mahkota Teknologi |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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