Correlation Between Adi Sarana and Surya Esa

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

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

Diversification Opportunities for Adi Sarana and Surya Esa

0.0

Correlation Coefficient

Adi Sarana  Surya Esa

Pay attention - limited upside

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

Pair Corralation between Adi Sarana and Surya Esa

If you would invest (100.00) in Surya Esa Perkasa on September 4, 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	100.0%
Values	Daily Returns

Adi Sarana Armada  vs.  Surya Esa Perkasa

Adi Sarana Armada

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Adi Sarana Armada has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Adi Sarana is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Surya Esa Perkasa

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Surya Esa Perkasa has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Surya Esa is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Adi Sarana and Surya Esa

The main advantage of trading using opposite Adi Sarana and Surya Esa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adi Sarana 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 Adi Sarana Armada 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.