Correlation Between Merdeka Copper and Medikaloka Hermina
Can any of the company-specific risk be diversified away by investing in both Merdeka Copper and Medikaloka Hermina 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 Merdeka Copper and Medikaloka Hermina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Merdeka Copper Gold and Medikaloka Hermina PT, you can compare the effects of market volatilities on Merdeka Copper and Medikaloka Hermina 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 Merdeka Copper with a short position of Medikaloka Hermina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merdeka Copper and Medikaloka Hermina.
Diversification Opportunities for Merdeka Copper and Medikaloka Hermina
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Merdeka and Medikaloka is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Merdeka Copper Gold and Medikaloka Hermina PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medikaloka Hermina and Merdeka Copper 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 Merdeka Copper Gold are associated (or correlated) with Medikaloka Hermina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medikaloka Hermina has no effect on the direction of Merdeka Copper i.e., Merdeka Copper and Medikaloka Hermina go up and down completely randomly.
Pair Corralation between Merdeka Copper and Medikaloka Hermina
Assuming the 90 days trading horizon Merdeka Copper Gold is expected to generate 1.64 times more return on investment than Medikaloka Hermina. However, Merdeka Copper is 1.64 times more volatile than Medikaloka Hermina PT. It trades about 0.12 of its potential returns per unit of risk. Medikaloka Hermina PT is currently generating about 0.04 per unit of risk. If you would invest 158,000 in Merdeka Copper Gold on November 27, 2024 and sell it today you would earn a total of 13,500 from holding Merdeka Copper Gold or generate 8.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Merdeka Copper Gold vs. Medikaloka Hermina PT
Performance |
| Timeline |
| Merdeka Copper Gold |
| Medikaloka Hermina |
Merdeka Copper and Medikaloka Hermina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merdeka Copper and Medikaloka Hermina
The main advantage of trading using opposite Merdeka Copper and Medikaloka Hermina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merdeka Copper position performs unexpectedly, Medikaloka Hermina 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 Medikaloka Hermina will offset losses from the drop in Medikaloka Hermina's long position.| Merdeka Copper vs. PT Sarana Menara | Merdeka Copper vs. Tower Bersama Infrastructure | Merdeka Copper vs. Pabrik Kertas Tjiwi | Merdeka Copper vs. Mitra Keluarga Karyasehat |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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