Correlation Between Metro Healthcare and Citatah Tbk
Can any of the company-specific risk be diversified away by investing in both Metro Healthcare and Citatah Tbk 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 Citatah Tbk 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 Citatah Tbk, you can compare the effects of market volatilities on Metro Healthcare and Citatah Tbk 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 Citatah Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Healthcare and Citatah Tbk.
Diversification Opportunities for Metro Healthcare and Citatah Tbk
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Metro and Citatah is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Metro Healthcare Indonesia and Citatah Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citatah 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 Citatah Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citatah Tbk has no effect on the direction of Metro Healthcare i.e., Metro Healthcare and Citatah Tbk go up and down completely randomly.
Pair Corralation between Metro Healthcare and Citatah Tbk
Assuming the 90 days trading horizon Metro Healthcare Indonesia is expected to under-perform the Citatah Tbk. In addition to that, Metro Healthcare is 1.37 times more volatile than Citatah Tbk. It trades about -0.02 of its total potential returns per unit of risk. Citatah Tbk is currently generating about -0.03 per unit of volatility. If you would invest 5,000 in Citatah Tbk on September 13, 2024 and sell it today you would lose (2,500) from holding Citatah Tbk or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Metro Healthcare Indonesia vs. Citatah Tbk
Performance |
| Timeline |
| Metro Healthcare Ind |
| Citatah Tbk |
Metro Healthcare and Citatah Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Healthcare and Citatah Tbk
The main advantage of trading using opposite Metro Healthcare and Citatah Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Healthcare position performs unexpectedly, Citatah Tbk 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 Citatah Tbk will offset losses from the drop in Citatah Tbk's long position.| Metro Healthcare vs. Medikaloka Hermina PT | Metro Healthcare vs. Sarana Meditama Metropolitan | Metro Healthcare vs. Mitra Keluarga Karyasehat | Metro Healthcare vs. Surya Permata Andalan |
| Citatah Tbk vs. Siloam International Hospitals | Citatah Tbk vs. Weha Transportasi Indonesia | Citatah Tbk vs. Diamond Food Indonesia | Citatah Tbk vs. Metro Healthcare 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |