Correlation Between Mitra Keluarga and Bundamedik Tbk
Can any of the company-specific risk be diversified away by investing in both Mitra Keluarga and Bundamedik Tbk 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 Mitra Keluarga and Bundamedik Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitra Keluarga Karyasehat and Bundamedik Tbk PT, you can compare the effects of market volatilities on Mitra Keluarga and Bundamedik Tbk 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 Mitra Keluarga with a short position of Bundamedik Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Keluarga and Bundamedik Tbk.
Diversification Opportunities for Mitra Keluarga and Bundamedik Tbk
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mitra and Bundamedik is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Keluarga Karyasehat and Bundamedik Tbk PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bundamedik Tbk PT and Mitra Keluarga 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 Mitra Keluarga Karyasehat are associated (or correlated) with Bundamedik Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bundamedik Tbk PT has no effect on the direction of Mitra Keluarga i.e., Mitra Keluarga and Bundamedik Tbk go up and down completely randomly.
Pair Corralation between Mitra Keluarga and Bundamedik Tbk
Assuming the 90 days trading horizon Mitra Keluarga Karyasehat is expected to generate 0.57 times more return on investment than Bundamedik Tbk. However, Mitra Keluarga Karyasehat is 1.75 times less risky than Bundamedik Tbk. It trades about -0.05 of its potential returns per unit of risk. Bundamedik Tbk PT is currently generating about -0.05 per unit of risk. If you would invest 300,543 in Mitra Keluarga Karyasehat on September 5, 2024 and sell it today you would lose (35,543) from holding Mitra Keluarga Karyasehat or give up 11.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Mitra Keluarga Karyasehat vs. Bundamedik Tbk PT
Performance |
| Timeline |
| Mitra Keluarga Karyasehat |
| Bundamedik Tbk PT |
Mitra Keluarga and Bundamedik Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Keluarga and Bundamedik Tbk
The main advantage of trading using opposite Mitra Keluarga and Bundamedik Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Keluarga position performs unexpectedly, Bundamedik Tbk 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 Bundamedik Tbk will offset losses from the drop in Bundamedik Tbk's long position.| Mitra Keluarga vs. Merdeka Copper Gold | Mitra Keluarga vs. Tower Bersama Infrastructure | Mitra Keluarga vs. Erajaya Swasembada Tbk | Mitra Keluarga vs. Surya Citra Media |
| Bundamedik Tbk vs. Medikaloka Hermina PT | Bundamedik Tbk vs. Mitra Keluarga Karyasehat | Bundamedik Tbk vs. Mitra Pinasthika Mustika | Bundamedik Tbk vs. Jakarta Int Hotels |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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