Correlation Between Diagnos Laboratorium and Medikaloka Hermina
Can any of the company-specific risk be diversified away by investing in both Diagnos Laboratorium and Medikaloka Hermina 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 Diagnos Laboratorium and Medikaloka Hermina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diagnos Laboratorium Utama and Medikaloka Hermina PT, you can compare the effects of market volatilities on Diagnos Laboratorium and Medikaloka Hermina 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 Diagnos Laboratorium with a short position of Medikaloka Hermina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diagnos Laboratorium and Medikaloka Hermina.
Diversification Opportunities for Diagnos Laboratorium and Medikaloka Hermina
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Diagnos and Medikaloka is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Diagnos Laboratorium Utama and Medikaloka Hermina PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medikaloka Hermina and Diagnos Laboratorium 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 Diagnos Laboratorium Utama are associated (or correlated) with Medikaloka Hermina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medikaloka Hermina has no effect on the direction of Diagnos Laboratorium i.e., Diagnos Laboratorium and Medikaloka Hermina go up and down completely randomly.
Pair Corralation between Diagnos Laboratorium and Medikaloka Hermina
Assuming the 90 days trading horizon Diagnos Laboratorium Utama is expected to under-perform the Medikaloka Hermina. In addition to that, Diagnos Laboratorium is 1.31 times more volatile than Medikaloka Hermina PT. It trades about -0.1 of its total potential returns per unit of risk. Medikaloka Hermina PT is currently generating about 0.17 per unit of volatility. If you would invest 142,000 in Medikaloka Hermina PT on September 3, 2024 and sell it today you would earn a total of 9,500 from holding Medikaloka Hermina PT or generate 6.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diagnos Laboratorium Utama vs. Medikaloka Hermina PT
Performance |
| Timeline |
| Diagnos Laboratorium |
| Medikaloka Hermina |
Diagnos Laboratorium and Medikaloka Hermina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diagnos Laboratorium and Medikaloka Hermina
The main advantage of trading using opposite Diagnos Laboratorium and Medikaloka Hermina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diagnos Laboratorium position performs unexpectedly, Medikaloka Hermina 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 Medikaloka Hermina will offset losses from the drop in Medikaloka Hermina's long position.| Diagnos Laboratorium vs. Prodia Widyahusada Tbk | Diagnos Laboratorium vs. Medikaloka Hermina PT | Diagnos Laboratorium vs. Itama Ranoraya | Diagnos Laboratorium vs. Digital Mediatama Maxima |
| Medikaloka Hermina vs. Mitra Keluarga Karyasehat | Medikaloka Hermina vs. Siloam International Hospitals | Medikaloka Hermina vs. Prodia Widyahusada Tbk | Medikaloka Hermina vs. Sumber Alfaria Trijaya |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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