Correlation Between Surya Esa and Mahaka Radio

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

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

Diversification Opportunities for Surya Esa and Mahaka Radio

0.0

Correlation Coefficient

Surya Esa  Mahaka Radio

Pay attention - limited upside

The 3 months correlation between Surya and Mahaka is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Surya Esa Perkasa and Mahaka Radio Integra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahaka Radio Integra and Surya Esa 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 Surya Esa Perkasa are associated (or correlated) with Mahaka Radio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahaka Radio Integra has no effect on the direction of Surya Esa i.e., Surya Esa and Mahaka Radio go up and down completely randomly.

Pair Corralation between Surya Esa and Mahaka Radio

If you would invest  5,000  in Mahaka Radio Integra on December 30, 2024 and sell it today you would earn a total of  0.00  from holding Mahaka Radio Integra or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Surya Esa Perkasa  vs.  Mahaka Radio Integra

Surya Esa Perkasa

Risk-Adjusted Performance

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 conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Mahaka Radio Integra

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Surya Esa and Mahaka Radio

The main advantage of trading using opposite Surya Esa and Mahaka Radio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surya Esa position performs unexpectedly, Mahaka Radio 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 Mahaka Radio will offset losses from the drop in Mahaka Radio's long position.

The idea behind Surya Esa Perkasa and Mahaka Radio Integra 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.