Correlation Between PT Sunter and Surya Permata
Can any of the company-specific risk be diversified away by investing in both PT Sunter and Surya Permata 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 PT Sunter and Surya Permata into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Sunter Lakeside and Surya Permata Andalan, you can compare the effects of market volatilities on PT Sunter and Surya Permata 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 PT Sunter with a short position of Surya Permata. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sunter and Surya Permata.
Diversification Opportunities for PT Sunter and Surya Permata
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SNLK and Surya is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding PT Sunter Lakeside and Surya Permata Andalan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Permata Andalan and PT Sunter 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 PT Sunter Lakeside are associated (or correlated) with Surya Permata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Permata Andalan has no effect on the direction of PT Sunter i.e., PT Sunter and Surya Permata go up and down completely randomly.
Pair Corralation between PT Sunter and Surya Permata
Assuming the 90 days trading horizon PT Sunter Lakeside is expected to under-perform the Surya Permata. In addition to that, PT Sunter is 1.07 times more volatile than Surya Permata Andalan. It trades about -0.19 of its total potential returns per unit of risk. Surya Permata Andalan is currently generating about 0.04 per unit of volatility. If you would invest 15,900 in Surya Permata Andalan on February 6, 2024 and sell it today you would earn a total of 100.00 from holding Surya Permata Andalan or generate 0.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
PT Sunter Lakeside vs. Surya Permata Andalan
Performance |
Timeline |
PT Sunter Lakeside |
Surya Permata Andalan |
PT Sunter and Surya Permata Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PT Sunter and Surya Permata
The main advantage of trading using opposite PT Sunter and Surya Permata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sunter position performs unexpectedly, Surya Permata 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 Permata will offset losses from the drop in Surya Permata's long position.PT Sunter vs. Andalan Sakti PrimaindoPT | PT Sunter vs. Bumi Benowo Sukses | PT Sunter vs. Bima Sakti Pertiwi | PT Sunter vs. Agro Yasa Lestari |
Surya Permata vs. Andalan Sakti PrimaindoPT | Surya Permata vs. Bumi Benowo Sukses | Surya Permata vs. Bima Sakti Pertiwi | Surya Permata vs. Agro Yasa Lestari |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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