Correlation Between PT UBC and Metro Healthcare
Can any of the company-specific risk be diversified away by investing in both PT UBC 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 PT UBC and Metro Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT UBC Medical and Metro Healthcare Indonesia, you can compare the effects of market volatilities on PT UBC 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 PT UBC with a short position of Metro Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT UBC and Metro Healthcare.
Diversification Opportunities for PT UBC and Metro Healthcare
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LABS and Metro is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding PT UBC Medical 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 PT UBC 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 UBC Medical 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 PT UBC i.e., PT UBC and Metro Healthcare go up and down completely randomly.
Pair Corralation between PT UBC and Metro Healthcare
Assuming the 90 days trading horizon PT UBC Medical is expected to under-perform the Metro Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, PT UBC Medical is 1.43 times less risky than Metro Healthcare. The stock trades about -0.26 of its potential returns per unit of risk. The Metro Healthcare Indonesia is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 13,000 in Metro Healthcare Indonesia on September 2, 2024 and sell it today you would earn a total of 4,100 from holding Metro Healthcare Indonesia or generate 31.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT UBC Medical vs. Metro Healthcare Indonesia
Performance |
| Timeline |
| PT UBC Medical |
| Metro Healthcare Ind |
PT UBC and Metro Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT UBC and Metro Healthcare
The main advantage of trading using opposite PT UBC and Metro Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT UBC 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.| PT UBC vs. Bank Central Asia | PT UBC vs. Bank Rakyat Indonesia | PT UBC vs. Bayan Resources Tbk | PT UBC vs. Bank Mandiri Persero |
| Metro Healthcare vs. Medikaloka Hermina PT | Metro Healthcare vs. Sarana Meditama Metropolitan | Metro Healthcare vs. Mitra Keluarga Karyasehat | Metro Healthcare vs. Bhakti Multi Artha |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |