Correlation Between Hensel Davest and Metro Healthcare
Can any of the company-specific risk be diversified away by investing in both Hensel Davest and Metro Healthcare 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 Hensel Davest and Metro Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hensel Davest Indonesia and Metro Healthcare Indonesia, you can compare the effects of market volatilities on Hensel Davest and Metro Healthcare 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 Hensel Davest with a short position of Metro Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hensel Davest and Metro Healthcare.
Diversification Opportunities for Hensel Davest and Metro Healthcare
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hensel and Metro is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Hensel Davest Indonesia and Metro Healthcare Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro Healthcare Ind and Hensel Davest 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 Hensel Davest Indonesia are associated (or correlated) with Metro Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro Healthcare Ind has no effect on the direction of Hensel Davest i.e., Hensel Davest and Metro Healthcare go up and down completely randomly.
Pair Corralation between Hensel Davest and Metro Healthcare
Assuming the 90 days trading horizon Hensel Davest Indonesia is expected to generate 10.99 times more return on investment than Metro Healthcare. However, Hensel Davest is 10.99 times more volatile than Metro Healthcare Indonesia. It trades about 0.04 of its potential returns per unit of risk. Metro Healthcare Indonesia is currently generating about -0.04 per unit of risk. If you would invest 5,000 in Hensel Davest Indonesia on September 12, 2024 and sell it today you would lose (3,600) from holding Hensel Davest Indonesia or give up 72.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hensel Davest Indonesia vs. Metro Healthcare Indonesia
Performance |
| Timeline |
| Hensel Davest Indonesia |
| Metro Healthcare Ind |
Hensel Davest and Metro Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hensel Davest and Metro Healthcare
The main advantage of trading using opposite Hensel Davest and Metro Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hensel Davest position performs unexpectedly, Metro Healthcare 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 Metro Healthcare will offset losses from the drop in Metro Healthcare's long position.| Hensel Davest vs. Kioson Komersial Indonesia | Hensel Davest vs. Sentral Mitra Informatika | Hensel Davest vs. Multipolar Technology Tbk | Hensel Davest vs. Nusantara Voucher Distribution |
| Metro Healthcare vs. Medikaloka Hermina PT | Metro Healthcare vs. Sarana Meditama Metropolitan | Metro Healthcare vs. Mitra Keluarga Karyasehat | Metro Healthcare vs. Surya Permata Andalan |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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