Correlation Between Aneka Gas and Surya Esa

Can any of the company-specific risk be diversified away by investing in both Aneka Gas 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 Aneka Gas and Surya Esa into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aneka Gas Industri and Surya Esa Perkasa, you can compare the effects of market volatilities on Aneka Gas 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 Aneka Gas with a short position of Surya Esa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Gas and Surya Esa.

Diversification Opportunities for Aneka Gas and Surya Esa

0.0

Correlation Coefficient

Aneka Gas  Surya Esa

Pay attention - limited upside

The 3 months correlation between Aneka and Surya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Gas Industri 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 Aneka Gas 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 Aneka Gas Industri 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 Aneka Gas i.e., Aneka Gas and Surya Esa go up and down completely randomly.

Pair Corralation between Aneka Gas and Surya Esa

If you would invest (100.00) in Surya Esa Perkasa on February 20, 2024 and sell it today you would earn a total of  100.00  from holding Surya Esa Perkasa or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Aneka Gas Industri  vs.  Surya Esa Perkasa

Aneka Gas Industri

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aneka Gas Industri are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Aneka Gas may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Surya Esa Perkasa

Risk-Adjusted Performance

27 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Surya Esa Perkasa are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Surya Esa disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aneka Gas and Surya Esa

The main advantage of trading using opposite Aneka Gas and Surya Esa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Gas 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.

The idea behind Aneka Gas Industri and Surya Esa Perkasa pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.