Correlation Between Medikaloka Hermina and XL Axiata
Can any of the company-specific risk be diversified away by investing in both Medikaloka Hermina and XL Axiata 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 XL Axiata 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 XL Axiata Tbk, you can compare the effects of market volatilities on Medikaloka Hermina and XL Axiata 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 XL Axiata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medikaloka Hermina and XL Axiata.
Diversification Opportunities for Medikaloka Hermina and XL Axiata
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Medikaloka and EXCL is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Medikaloka Hermina PT and XL Axiata Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XL Axiata 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 XL Axiata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XL Axiata Tbk has no effect on the direction of Medikaloka Hermina i.e., Medikaloka Hermina and XL Axiata go up and down completely randomly.
Pair Corralation between Medikaloka Hermina and XL Axiata
Assuming the 90 days trading horizon Medikaloka Hermina PT is expected to generate 1.64 times more return on investment than XL Axiata. However, Medikaloka Hermina is 1.64 times more volatile than XL Axiata Tbk. It trades about -0.06 of its potential returns per unit of risk. XL Axiata Tbk is currently generating about -0.11 per unit of risk. If you would invest 143,000 in Medikaloka Hermina PT on August 28, 2024 and sell it today you would lose (3,500) from holding Medikaloka Hermina PT or give up 2.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medikaloka Hermina PT vs. XL Axiata Tbk
Performance |
| Timeline |
| Medikaloka Hermina |
| XL Axiata Tbk |
Medikaloka Hermina and XL Axiata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medikaloka Hermina and XL Axiata
The main advantage of trading using opposite Medikaloka Hermina and XL Axiata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medikaloka Hermina position performs unexpectedly, XL Axiata 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 XL Axiata will offset losses from the drop in XL Axiata's long position.| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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