Correlation Between Weha Transportasi and Surya Semesta
Can any of the company-specific risk be diversified away by investing in both Weha Transportasi and Surya Semesta 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 Weha Transportasi and Surya Semesta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weha Transportasi Indonesia and Surya Semesta Internusa, you can compare the effects of market volatilities on Weha Transportasi and Surya Semesta 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 Weha Transportasi with a short position of Surya Semesta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weha Transportasi and Surya Semesta.
Diversification Opportunities for Weha Transportasi and Surya Semesta
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Weha and Surya is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Weha Transportasi Indonesia and Surya Semesta Internusa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Semesta Internusa and Weha Transportasi 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 Weha Transportasi Indonesia are associated (or correlated) with Surya Semesta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Semesta Internusa has no effect on the direction of Weha Transportasi i.e., Weha Transportasi and Surya Semesta go up and down completely randomly.
Pair Corralation between Weha Transportasi and Surya Semesta
Assuming the 90 days trading horizon Weha Transportasi Indonesia is expected to under-perform the Surya Semesta. But the stock apears to be less risky and, when comparing its historical volatility, Weha Transportasi Indonesia is 1.04 times less risky than Surya Semesta. The stock trades about -0.37 of its potential returns per unit of risk. The Surya Semesta Internusa is currently generating about -0.34 of returns per unit of risk over similar time horizon. If you would invest 121,000 in Surya Semesta Internusa on August 29, 2024 and sell it today you would lose (22,000) from holding Surya Semesta Internusa or give up 18.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weha Transportasi Indonesia vs. Surya Semesta Internusa
Performance |
| Timeline |
| Weha Transportasi |
| Surya Semesta Internusa |
Weha Transportasi and Surya Semesta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weha Transportasi and Surya Semesta
The main advantage of trading using opposite Weha Transportasi and Surya Semesta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weha Transportasi position performs unexpectedly, Surya Semesta 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 Semesta will offset losses from the drop in Surya Semesta's long position.| Weha Transportasi vs. PT Temas Tbk | Weha Transportasi vs. Dosni Roha Indonesia | Weha Transportasi vs. Rig Tenders Tbk | Weha Transportasi vs. Samudera Indonesia 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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