Correlation Between Metro Healthcare and MNC Vision
Can any of the company-specific risk be diversified away by investing in both Metro Healthcare and MNC Vision 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 MNC Vision 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 MNC Vision Networks, you can compare the effects of market volatilities on Metro Healthcare and MNC Vision 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 MNC Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Healthcare and MNC Vision.
Diversification Opportunities for Metro Healthcare and MNC Vision
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Metro and MNC is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Metro Healthcare Indonesia and MNC Vision Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MNC Vision Networks 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 MNC Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MNC Vision Networks has no effect on the direction of Metro Healthcare i.e., Metro Healthcare and MNC Vision go up and down completely randomly.
Pair Corralation between Metro Healthcare and MNC Vision
Assuming the 90 days trading horizon Metro Healthcare Indonesia is expected to generate 0.9 times more return on investment than MNC Vision. However, Metro Healthcare Indonesia is 1.11 times less risky than MNC Vision. It trades about 0.45 of its potential returns per unit of risk. MNC Vision Networks is currently generating about -0.21 per unit of risk. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metro Healthcare Indonesia vs. MNC Vision Networks
Performance |
| Timeline |
| Metro Healthcare Ind |
| MNC Vision Networks |
Metro Healthcare and MNC Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Healthcare and MNC Vision
The main advantage of trading using opposite Metro Healthcare and MNC Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Healthcare position performs unexpectedly, MNC Vision 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 MNC Vision will offset losses from the drop in MNC Vision'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 |
| MNC Vision vs. Mnc Land Tbk | MNC Vision vs. MNC Studios International | MNC Vision vs. Puradelta Lestari PT | MNC Vision vs. Integra Indocabinet Tbk |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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