Correlation Between PT Data and Metrodata Electronics
Can any of the company-specific risk be diversified away by investing in both PT Data and Metrodata Electronics 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 PT Data and Metrodata Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Data Sinergitama and Metrodata Electronics Tbk, you can compare the effects of market volatilities on PT Data and Metrodata Electronics 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 PT Data with a short position of Metrodata Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Data and Metrodata Electronics.
Diversification Opportunities for PT Data and Metrodata Electronics
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between ELIT and Metrodata is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding PT Data Sinergitama and Metrodata Electronics Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metrodata Electronics Tbk and PT Data 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 PT Data Sinergitama are associated (or correlated) with Metrodata Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metrodata Electronics Tbk has no effect on the direction of PT Data i.e., PT Data and Metrodata Electronics go up and down completely randomly.
Pair Corralation between PT Data and Metrodata Electronics
Assuming the 90 days trading horizon PT Data Sinergitama is expected to generate 2.28 times more return on investment than Metrodata Electronics. However, PT Data is 2.28 times more volatile than Metrodata Electronics Tbk. It trades about 0.01 of its potential returns per unit of risk. Metrodata Electronics Tbk is currently generating about 0.01 per unit of risk. If you would invest 15,271 in PT Data Sinergitama on November 5, 2024 and sell it today you would lose (2,271) from holding PT Data Sinergitama or give up 14.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
PT Data Sinergitama vs. Metrodata Electronics Tbk
Performance |
| Timeline |
| PT Data Sinergitama |
| Metrodata Electronics Tbk |
PT Data and Metrodata Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Data and Metrodata Electronics
The main advantage of trading using opposite PT Data and Metrodata Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Data position performs unexpectedly, Metrodata Electronics 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 Metrodata Electronics will offset losses from the drop in Metrodata Electronics' long position.| PT Data vs. Indosterling Technomedia Tbk | PT Data vs. Indonesian Tobacco Tbk | PT Data vs. Ashmore Asset Management | PT Data vs. Siloam International Hospitals |
| Metrodata Electronics vs. Multipolar Tbk | Metrodata Electronics vs. Astra Graphia Tbk | Metrodata Electronics vs. Matahari Putra Prima | Metrodata Electronics vs. Ramayana Lestari Sentosa |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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