Correlation Between Bundamedik Tbk and Medikaloka Hermina
Can any of the company-specific risk be diversified away by investing in both Bundamedik Tbk and Medikaloka Hermina 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 Bundamedik Tbk and Medikaloka Hermina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bundamedik Tbk PT and Medikaloka Hermina PT, you can compare the effects of market volatilities on Bundamedik Tbk and Medikaloka Hermina 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 Bundamedik Tbk with a short position of Medikaloka Hermina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bundamedik Tbk and Medikaloka Hermina.
Diversification Opportunities for Bundamedik Tbk and Medikaloka Hermina
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bundamedik and Medikaloka is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bundamedik Tbk PT and Medikaloka Hermina PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medikaloka Hermina and Bundamedik Tbk 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 Bundamedik Tbk PT are associated (or correlated) with Medikaloka Hermina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medikaloka Hermina has no effect on the direction of Bundamedik Tbk i.e., Bundamedik Tbk and Medikaloka Hermina go up and down completely randomly.
Pair Corralation between Bundamedik Tbk and Medikaloka Hermina
Assuming the 90 days trading horizon Bundamedik Tbk PT is expected to generate 1.64 times more return on investment than Medikaloka Hermina. However, Bundamedik Tbk is 1.64 times more volatile than Medikaloka Hermina PT. It trades about 0.04 of its potential returns per unit of risk. Medikaloka Hermina PT is currently generating about -0.23 per unit of risk. If you would invest 25,000 in Bundamedik Tbk PT on November 2, 2024 and sell it today you would earn a total of 400.00 from holding Bundamedik Tbk PT or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Bundamedik Tbk PT vs. Medikaloka Hermina PT
Performance |
| Timeline |
| Bundamedik Tbk PT |
| Medikaloka Hermina |
Bundamedik Tbk and Medikaloka Hermina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bundamedik Tbk and Medikaloka Hermina
The main advantage of trading using opposite Bundamedik Tbk and Medikaloka Hermina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bundamedik Tbk position performs unexpectedly, Medikaloka Hermina 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 Medikaloka Hermina will offset losses from the drop in Medikaloka Hermina's long position.| Bundamedik Tbk vs. Medikaloka Hermina PT | Bundamedik Tbk vs. Diagnos Laboratorium Utama | Bundamedik Tbk vs. Prodia Widyahusada Tbk | Bundamedik Tbk vs. Sarana Meditama Metropolitan |
| Medikaloka Hermina vs. Mitra Keluarga Karyasehat | Medikaloka Hermina vs. Siloam International Hospitals | Medikaloka Hermina vs. Prodia Widyahusada Tbk | Medikaloka Hermina vs. Sumber Alfaria Trijaya |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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