Correlation Between Metro Healthcare and Suryamas Dutamakmur
Can any of the company-specific risk be diversified away by investing in both Metro Healthcare and Suryamas Dutamakmur 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 Suryamas Dutamakmur 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 Suryamas Dutamakmur Tbk, you can compare the effects of market volatilities on Metro Healthcare and Suryamas Dutamakmur 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 Suryamas Dutamakmur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Healthcare and Suryamas Dutamakmur.
Diversification Opportunities for Metro Healthcare and Suryamas Dutamakmur
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Metro and Suryamas is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Metro Healthcare Indonesia and Suryamas Dutamakmur Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suryamas Dutamakmur 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 Suryamas Dutamakmur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suryamas Dutamakmur Tbk has no effect on the direction of Metro Healthcare i.e., Metro Healthcare and Suryamas Dutamakmur go up and down completely randomly.
Pair Corralation between Metro Healthcare and Suryamas Dutamakmur
Assuming the 90 days trading horizon Metro Healthcare Indonesia is expected to under-perform the Suryamas Dutamakmur. In addition to that, Metro Healthcare is 1.66 times more volatile than Suryamas Dutamakmur Tbk. It trades about -0.03 of its total potential returns per unit of risk. Suryamas Dutamakmur Tbk is currently generating about 0.11 per unit of volatility. If you would invest 16,700 in Suryamas Dutamakmur Tbk on August 31, 2024 and sell it today you would earn a total of 35,300 from holding Suryamas Dutamakmur Tbk or generate 211.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metro Healthcare Indonesia vs. Suryamas Dutamakmur Tbk
Performance |
| Timeline |
| Metro Healthcare Ind |
| Suryamas Dutamakmur Tbk |
Metro Healthcare and Suryamas Dutamakmur Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Healthcare and Suryamas Dutamakmur
The main advantage of trading using opposite Metro Healthcare and Suryamas Dutamakmur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Healthcare position performs unexpectedly, Suryamas Dutamakmur 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 Suryamas Dutamakmur will offset losses from the drop in Suryamas Dutamakmur's long position.| Metro Healthcare vs. Medikaloka Hermina PT | Metro Healthcare vs. Sarana Meditama Metropolitan | Metro Healthcare vs. Mitra Keluarga Karyasehat | Metro Healthcare vs. Bhakti Multi Artha |
| Suryamas Dutamakmur vs. Pikko Land Development | Suryamas Dutamakmur vs. Ristia Bintang Mahkotasejati | Suryamas Dutamakmur vs. Pudjiadi Prestige Tbk | Suryamas Dutamakmur vs. Indonesia Prima Property |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |