Correlation Between Surya Esa and MNC Studios

Can any of the company-specific risk be diversified away by investing in both Surya Esa and MNC Studios 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 MNC Studios 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 MNC Studios International, you can compare the effects of market volatilities on Surya Esa and MNC Studios 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 MNC Studios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Esa and MNC Studios.

Diversification Opportunities for Surya Esa and MNC Studios

0.91

Correlation Coefficient

Surya Esa  MNC Studios

Almost no diversification

The 3 months correlation between Surya and MNC is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Surya Esa Perkasa and MNC Studios International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MNC Studios International 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 MNC Studios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MNC Studios International has no effect on the direction of Surya Esa i.e., Surya Esa and MNC Studios go up and down completely randomly.

Pair Corralation between Surya Esa and MNC Studios

Assuming the 90 days trading horizon Surya Esa Perkasa is expected to generate 0.77 times more return on investment than MNC Studios. However, Surya Esa Perkasa is 1.3 times less risky than MNC Studios. It trades about 0.08 of its potential returns per unit of risk. MNC Studios International is currently generating about -0.13 per unit of risk. If you would invest  81,500  in Surya Esa Perkasa on October 8, 2024 and sell it today you would earn a total of  2,500  from holding Surya Esa Perkasa or generate 3.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Surya Esa Perkasa  vs.  MNC Studios International

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 latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

MNC Studios International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MNC Studios International 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 February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Surya Esa and MNC Studios

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

The idea behind Surya Esa Perkasa and MNC Studios International 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.