Correlation Between Metro Healthcare and Bank Ganesha
Can any of the company-specific risk be diversified away by investing in both Metro Healthcare and Bank Ganesha 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 Bank Ganesha 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 Bank Ganesha Tbk, you can compare the effects of market volatilities on Metro Healthcare and Bank Ganesha 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 Bank Ganesha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Healthcare and Bank Ganesha.
Diversification Opportunities for Metro Healthcare and Bank Ganesha
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Metro and Bank is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Metro Healthcare Indonesia and Bank Ganesha Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Ganesha Tbk 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 Bank Ganesha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Ganesha Tbk has no effect on the direction of Metro Healthcare i.e., Metro Healthcare and Bank Ganesha go up and down completely randomly.
Pair Corralation between Metro Healthcare and Bank Ganesha
Assuming the 90 days trading horizon Metro Healthcare Indonesia is expected to generate 1.41 times more return on investment than Bank Ganesha. However, Metro Healthcare is 1.41 times more volatile than Bank Ganesha Tbk. It trades about 0.45 of its potential returns per unit of risk. Bank Ganesha Tbk is currently generating about 0.03 per unit of risk. If you would invest 12,400 in Metro Healthcare Indonesia on August 29, 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metro Healthcare Indonesia vs. Bank Ganesha Tbk
Performance |
| Timeline |
| Metro Healthcare Ind |
| Bank Ganesha Tbk |
Metro Healthcare and Bank Ganesha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Healthcare and Bank Ganesha
The main advantage of trading using opposite Metro Healthcare and Bank Ganesha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Healthcare position performs unexpectedly, Bank Ganesha 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 Bank Ganesha will offset losses from the drop in Bank Ganesha'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 |
| Bank Ganesha vs. Bk Harda Internasional | Bank Ganesha vs. Bank Yudha Bhakti | Bank Ganesha vs. Bank Mnc Internasional | Bank Ganesha vs. Bank Capital Indonesia |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |