Correlation Between Metro Healthcare and Mahaka Radio
Can any of the company-specific risk be diversified away by investing in both Metro Healthcare and Mahaka Radio 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 Mahaka Radio 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 Mahaka Radio Integra, you can compare the effects of market volatilities on Metro Healthcare and Mahaka Radio 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 Mahaka Radio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Healthcare and Mahaka Radio.
Diversification Opportunities for Metro Healthcare and Mahaka Radio
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Metro and Mahaka is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Metro Healthcare Indonesia and Mahaka Radio Integra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahaka Radio Integra 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 Mahaka Radio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahaka Radio Integra has no effect on the direction of Metro Healthcare i.e., Metro Healthcare and Mahaka Radio go up and down completely randomly.
Pair Corralation between Metro Healthcare and Mahaka Radio
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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metro Healthcare Indonesia vs. Mahaka Radio Integra
Performance |
| Timeline |
| Metro Healthcare Ind |
| Mahaka Radio Integra |
Metro Healthcare and Mahaka Radio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Healthcare and Mahaka Radio
The main advantage of trading using opposite Metro Healthcare and Mahaka Radio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Healthcare position performs unexpectedly, Mahaka Radio 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 Mahaka Radio will offset losses from the drop in Mahaka Radio'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 |
| Mahaka Radio vs. Mnc Land Tbk | Mahaka Radio vs. MNC Vision Networks | Mahaka Radio vs. Medikaloka Hermina PT |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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