Correlation Between Visi Media and Samudera Indonesia

Can any of the company-specific risk be diversified away by investing in both Visi Media and Samudera Indonesia 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 Visi Media and Samudera Indonesia into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Visi Media Asia and Samudera Indonesia Tbk, you can compare the effects of market volatilities on Visi Media and Samudera Indonesia 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 Visi Media with a short position of Samudera Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visi Media and Samudera Indonesia.

Diversification Opportunities for Visi Media and Samudera Indonesia

-0.6

Correlation Coefficient

Visi Media  Samudera Indonesia

Excellent diversification

The 3 months correlation between Visi and Samudera is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Visi Media Asia and Samudera Indonesia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samudera Indonesia Tbk and Visi Media 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 Visi Media Asia are associated (or correlated) with Samudera Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samudera Indonesia Tbk has no effect on the direction of Visi Media i.e., Visi Media and Samudera Indonesia go up and down completely randomly.

Pair Corralation between Visi Media and Samudera Indonesia

Assuming the 90 days trading horizon Visi Media Asia is expected to generate 2.26 times more return on investment than Samudera Indonesia. However, Visi Media is 2.26 times more volatile than Samudera Indonesia Tbk. It trades about 0.25 of its potential returns per unit of risk. Samudera Indonesia Tbk is currently generating about -0.11 per unit of risk. If you would invest  600.00  in Visi Media Asia on December 31, 2024 and sell it today you would earn a total of  700.00  from holding Visi Media Asia or generate 116.67% return on investment over 90 days.

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

Visi Media Asia  vs.  Samudera Indonesia Tbk

Visi Media Asia

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Visi Media Asia are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Visi Media disclosed solid returns over the last few months and may actually be approaching a breakup point.

Samudera Indonesia Tbk

Risk-Adjusted Performance

Very Weak

Over the last 90 days Samudera Indonesia Tbk 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 May 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Visi Media and Samudera Indonesia

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

The idea behind Visi Media Asia and Samudera Indonesia Tbk 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.