Correlation Between Medikaloka Hermina and Archi Indonesia
Can any of the company-specific risk be diversified away by investing in both Medikaloka Hermina and Archi Indonesia 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 Medikaloka Hermina and Archi Indonesia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medikaloka Hermina PT and Archi Indonesia Tbk, you can compare the effects of market volatilities on Medikaloka Hermina and Archi Indonesia 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 Medikaloka Hermina with a short position of Archi Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medikaloka Hermina and Archi Indonesia.
Diversification Opportunities for Medikaloka Hermina and Archi Indonesia
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Medikaloka and Archi is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Medikaloka Hermina PT and Archi Indonesia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Archi Indonesia Tbk and Medikaloka Hermina 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 Medikaloka Hermina PT are associated (or correlated) with Archi Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Archi Indonesia Tbk has no effect on the direction of Medikaloka Hermina i.e., Medikaloka Hermina and Archi Indonesia go up and down completely randomly.
Pair Corralation between Medikaloka Hermina and Archi Indonesia
Assuming the 90 days trading horizon Medikaloka Hermina PT is expected to generate 0.76 times more return on investment than Archi Indonesia. However, Medikaloka Hermina PT is 1.32 times less risky than Archi Indonesia. It trades about 0.03 of its potential returns per unit of risk. Archi Indonesia Tbk is currently generating about -0.01 per unit of risk. If you would invest 131,951 in Medikaloka Hermina PT on August 31, 2024 and sell it today you would earn a total of 19,549 from holding Medikaloka Hermina PT or generate 14.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Medikaloka Hermina PT vs. Archi Indonesia Tbk
Performance |
| Timeline |
| Medikaloka Hermina |
| Archi Indonesia Tbk |
Medikaloka Hermina and Archi Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medikaloka Hermina and Archi Indonesia
The main advantage of trading using opposite Medikaloka Hermina and Archi Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medikaloka Hermina position performs unexpectedly, Archi Indonesia 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 Archi Indonesia will offset losses from the drop in Archi Indonesia's long position.| Medikaloka Hermina vs. Mitra Keluarga Karyasehat | Medikaloka Hermina vs. Matahari Department Store | Medikaloka Hermina vs. Surya Citra Media | Medikaloka Hermina vs. Lippo Karawaci Tbk |
| Archi Indonesia vs. Triputra Agro Persada | Archi Indonesia vs. Berkah Beton Sadaya | Archi Indonesia vs. PAM Mineral Tbk | Archi Indonesia vs. PT Bukalapak |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |