Correlation Between Bintang Oto and Metro Healthcare
Can any of the company-specific risk be diversified away by investing in both Bintang Oto and Metro Healthcare 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 Bintang Oto and Metro Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bintang Oto Global and Metro Healthcare Indonesia, you can compare the effects of market volatilities on Bintang Oto and Metro Healthcare 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 Bintang Oto with a short position of Metro Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bintang Oto and Metro Healthcare.
Diversification Opportunities for Bintang Oto and Metro Healthcare
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bintang and Metro is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Bintang Oto Global and Metro Healthcare Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro Healthcare Ind and Bintang Oto 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 Bintang Oto Global are associated (or correlated) with Metro Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro Healthcare Ind has no effect on the direction of Bintang Oto i.e., Bintang Oto and Metro Healthcare go up and down completely randomly.
Pair Corralation between Bintang Oto and Metro Healthcare
Assuming the 90 days trading horizon Bintang Oto Global is expected to under-perform the Metro Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Bintang Oto Global is 2.86 times less risky than Metro Healthcare. The stock trades about -0.45 of its potential returns per unit of risk. The Metro Healthcare Indonesia is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 12,400 in Metro Healthcare Indonesia on August 28, 2024 and sell it today you would earn a total of 4,600 from holding Metro Healthcare Indonesia or generate 37.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bintang Oto Global vs. Metro Healthcare Indonesia
Performance |
| Timeline |
| Bintang Oto Global |
| Metro Healthcare Ind |
Bintang Oto and Metro Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bintang Oto and Metro Healthcare
The main advantage of trading using opposite Bintang Oto and Metro Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bintang Oto position performs unexpectedly, Metro Healthcare 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 Metro Healthcare will offset losses from the drop in Metro Healthcare's long position.| Bintang Oto vs. Surya Permata Andalan | Bintang Oto vs. Aneka Gas Industri | Bintang Oto vs. Buana Listya Tama | Bintang Oto vs. Trisula Textile Industries |
| Metro Healthcare vs. Medikaloka Hermina PT | Metro Healthcare vs. Mitra Keluarga Karyasehat | Metro Healthcare vs. Bhakti Multi Artha | Metro Healthcare vs. Surya Permata Andalan |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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