Correlation Between Metro Healthcare and Bekasi Fajar
Can any of the company-specific risk be diversified away by investing in both Metro Healthcare and Bekasi Fajar 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 Metro Healthcare and Bekasi Fajar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metro Healthcare Indonesia and Bekasi Fajar Industrial, you can compare the effects of market volatilities on Metro Healthcare and Bekasi Fajar 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 Metro Healthcare with a short position of Bekasi Fajar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Healthcare and Bekasi Fajar.
Diversification Opportunities for Metro Healthcare and Bekasi Fajar
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Metro and Bekasi is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Metro Healthcare Indonesia and Bekasi Fajar Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bekasi Fajar Industrial and Metro Healthcare 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 Metro Healthcare Indonesia are associated (or correlated) with Bekasi Fajar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bekasi Fajar Industrial has no effect on the direction of Metro Healthcare i.e., Metro Healthcare and Bekasi Fajar go up and down completely randomly.
Pair Corralation between Metro Healthcare and Bekasi Fajar
Assuming the 90 days trading horizon Metro Healthcare Indonesia is expected to generate 1.54 times more return on investment than Bekasi Fajar. However, Metro Healthcare is 1.54 times more volatile than Bekasi Fajar Industrial. It trades about 0.11 of its potential returns per unit of risk. Bekasi Fajar Industrial is currently generating about 0.01 per unit of risk. If you would invest 11,000 in Metro Healthcare Indonesia on August 28, 2024 and sell it today you would earn a total of 5,500 from holding Metro Healthcare Indonesia or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Metro Healthcare Indonesia vs. Bekasi Fajar Industrial
Performance |
| Timeline |
| Metro Healthcare Ind |
| Bekasi Fajar Industrial |
Metro Healthcare and Bekasi Fajar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Healthcare and Bekasi Fajar
The main advantage of trading using opposite Metro Healthcare and Bekasi Fajar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Healthcare position performs unexpectedly, Bekasi Fajar 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 Bekasi Fajar will offset losses from the drop in Bekasi Fajar's long position.| Metro Healthcare vs. Medikaloka Hermina PT | Metro Healthcare vs. Mitra Keluarga Karyasehat | Metro Healthcare vs. Bhakti Multi Artha | Metro Healthcare vs. Surya Permata Andalan |
| Bekasi Fajar vs. Agung Podomoro Land | Bekasi Fajar vs. Surya Semesta Internusa | Bekasi Fajar vs. Alam Sutera Realty | Bekasi Fajar vs. Bumi Serpong Damai |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |