Correlation Between Surya Permata and Asuransi Jiwa

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

By analyzing existing cross correlation between Surya Permata Andalan and Asuransi Jiwa Sinarmas, you can compare the effects of market volatilities on Surya Permata and Asuransi Jiwa 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 Permata with a short position of Asuransi Jiwa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surya Permata and Asuransi Jiwa.

Diversification Opportunities for Surya Permata and Asuransi Jiwa

-0.46

Correlation Coefficient

Surya Permata  Asuransi Jiwa

Very good diversification

The 3 months correlation between Surya and Asuransi is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Surya Permata Andalan and Asuransi Jiwa Sinarmas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuransi Jiwa Sinarmas and Surya Permata 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 Permata Andalan are associated (or correlated) with Asuransi Jiwa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuransi Jiwa Sinarmas has no effect on the direction of Surya Permata i.e., Surya Permata and Asuransi Jiwa go up and down completely randomly.

Pair Corralation between Surya Permata and Asuransi Jiwa

Assuming the 90 days trading horizon Surya Permata Andalan is expected to generate 0.34 times more return on investment than Asuransi Jiwa. However, Surya Permata Andalan is 2.97 times less risky than Asuransi Jiwa. It trades about 0.05 of its potential returns per unit of risk. Asuransi Jiwa Sinarmas is currently generating about 0.01 per unit of risk. If you would invest  14,800  in Surya Permata Andalan on December 31, 2024 and sell it today you would earn a total of  700.00  from holding Surya Permata Andalan or generate 4.73% return on investment over 90 days.

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

Surya Permata Andalan  vs.  Asuransi Jiwa Sinarmas

Surya Permata Andalan

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Surya Permata Andalan are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Surya Permata is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Asuransi Jiwa Sinarmas

Risk-Adjusted Performance

Very Weak

Over the last 90 days Asuransi Jiwa Sinarmas has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Asuransi Jiwa 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 Permata and Asuransi Jiwa

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

The idea behind Surya Permata Andalan and Asuransi Jiwa Sinarmas 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.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.