Correlation Between Fortune Mate and Metrodata Electronics
Can any of the company-specific risk be diversified away by investing in both Fortune Mate 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 Fortune Mate and Metrodata Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortune Mate Indonesia and Metrodata Electronics Tbk, you can compare the effects of market volatilities on Fortune Mate 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 Fortune Mate with a short position of Metrodata Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortune Mate and Metrodata Electronics.
Diversification Opportunities for Fortune Mate and Metrodata Electronics
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fortune and Metrodata is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Fortune Mate Indonesia 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 Fortune Mate 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 Fortune Mate Indonesia 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 Fortune Mate i.e., Fortune Mate and Metrodata Electronics go up and down completely randomly.
Pair Corralation between Fortune Mate and Metrodata Electronics
If you would invest 54,500 in Fortune Mate Indonesia on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Fortune Mate Indonesia or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortune Mate Indonesia vs. Metrodata Electronics Tbk
Performance |
| Timeline |
| Fortune Mate Indonesia |
| Metrodata Electronics Tbk |
Fortune Mate and Metrodata Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortune Mate and Metrodata Electronics
The main advantage of trading using opposite Fortune Mate and Metrodata Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortune Mate 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.| Fortune Mate vs. Metrodata Electronics Tbk | Fortune Mate vs. Trinitan Metals and | Fortune Mate vs. Weha Transportasi Indonesia | Fortune Mate vs. Pacific Strategic Financial |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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