Correlation Between Pelangi Indah and Surya Toto

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

By analyzing existing cross correlation between Pelangi Indah Canindo and Surya Toto Indonesia, you can compare the effects of market volatilities on Pelangi Indah 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 Pelangi Indah with a short position of Surya Toto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pelangi Indah and Surya Toto.

Diversification Opportunities for Pelangi Indah and Surya Toto

0.0

Correlation Coefficient

Pelangi Indah  Surya Toto

Pay attention - limited upside

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

Pair Corralation between Pelangi Indah and Surya Toto

If you would invest (100.00) in Surya Toto Indonesia on March 12, 2024 and sell it today you would earn a total of  100.00  from holding Surya Toto Indonesia 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

Pelangi Indah Canindo  vs.  Surya Toto Indonesia

Pelangi Indah Canindo

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Pelangi Indah Canindo has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in July 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Surya Toto Indonesia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Surya Toto Indonesia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Pelangi Indah and Surya Toto

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

The idea behind Pelangi Indah Canindo and Surya Toto Indonesia 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.