Correlation Between Bundamedik Tbk and Mitra Keluarga
Can any of the company-specific risk be diversified away by investing in both Bundamedik Tbk and Mitra Keluarga 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 Mitra Keluarga 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 Mitra Keluarga Karyasehat, you can compare the effects of market volatilities on Bundamedik Tbk and Mitra Keluarga 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 Mitra Keluarga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bundamedik Tbk and Mitra Keluarga.
Diversification Opportunities for Bundamedik Tbk and Mitra Keluarga
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bundamedik and Mitra is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bundamedik Tbk PT and Mitra Keluarga Karyasehat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Keluarga Karyasehat 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 Mitra Keluarga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Keluarga Karyasehat has no effect on the direction of Bundamedik Tbk i.e., Bundamedik Tbk and Mitra Keluarga go up and down completely randomly.
Pair Corralation between Bundamedik Tbk and Mitra Keluarga
Assuming the 90 days trading horizon Bundamedik Tbk PT is expected to under-perform the Mitra Keluarga. In addition to that, Bundamedik Tbk is 1.81 times more volatile than Mitra Keluarga Karyasehat. It trades about -0.2 of its total potential returns per unit of risk. Mitra Keluarga Karyasehat is currently generating about -0.17 per unit of volatility. If you would invest 275,000 in Mitra Keluarga Karyasehat on September 4, 2024 and sell it today you would lose (16,000) from holding Mitra Keluarga Karyasehat or give up 5.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bundamedik Tbk PT vs. Mitra Keluarga Karyasehat
Performance |
| Timeline |
| Bundamedik Tbk PT |
| Mitra Keluarga Karyasehat |
Bundamedik Tbk and Mitra Keluarga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bundamedik Tbk and Mitra Keluarga
The main advantage of trading using opposite Bundamedik Tbk and Mitra Keluarga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bundamedik Tbk position performs unexpectedly, Mitra Keluarga 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 Mitra Keluarga will offset losses from the drop in Mitra Keluarga's long position.| Bundamedik Tbk vs. Medikaloka Hermina PT | Bundamedik Tbk vs. Mitra Keluarga Karyasehat | Bundamedik Tbk vs. Mitra Pinasthika Mustika | Bundamedik Tbk vs. Jakarta Int Hotels |
| Mitra Keluarga vs. Surya Citra Media | Mitra Keluarga vs. Sawit Sumbermas Sarana | Mitra Keluarga vs. Mitra Pinasthika Mustika | Mitra Keluarga vs. Jakarta Int Hotels |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |