Correlation Between Menthobi Karyatama and Metro Healthcare
Can any of the company-specific risk be diversified away by investing in both Menthobi Karyatama 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 Menthobi Karyatama and Metro Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Menthobi Karyatama Raya and Metro Healthcare Indonesia, you can compare the effects of market volatilities on Menthobi Karyatama 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 Menthobi Karyatama with a short position of Metro Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menthobi Karyatama and Metro Healthcare.
Diversification Opportunities for Menthobi Karyatama and Metro Healthcare
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Menthobi and Metro is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Menthobi Karyatama Raya 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 Menthobi Karyatama 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 Menthobi Karyatama Raya 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 Menthobi Karyatama i.e., Menthobi Karyatama and Metro Healthcare go up and down completely randomly.
Pair Corralation between Menthobi Karyatama and Metro Healthcare
Assuming the 90 days trading horizon Menthobi Karyatama Raya is expected to under-perform the Metro Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Menthobi Karyatama Raya is 2.45 times less risky than Metro Healthcare. The stock trades about -0.02 of its potential returns per unit of risk. The Metro Healthcare Indonesia is currently generating about 0.46 of returns per unit of risk over similar time horizon. If you would invest 13,200 in Metro Healthcare Indonesia on September 12, 2024 and sell it today you would earn a total of 4,800 from holding Metro Healthcare Indonesia or generate 36.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Menthobi Karyatama Raya vs. Metro Healthcare Indonesia
Performance |
| Timeline |
| Menthobi Karyatama Raya |
| Metro Healthcare Ind |
Menthobi Karyatama and Metro Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menthobi Karyatama and Metro Healthcare
The main advantage of trading using opposite Menthobi Karyatama and Metro Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menthobi Karyatama 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.| Menthobi Karyatama vs. Mahkota Group Tbk | Menthobi Karyatama vs. Palma Serasih PT | Menthobi Karyatama vs. Cisadane Sawit Raya | Menthobi Karyatama vs. Diamond Food Indonesia |
| Metro Healthcare vs. Medikaloka Hermina PT | Metro Healthcare vs. Sarana Meditama Metropolitan | Metro Healthcare vs. Mitra Keluarga Karyasehat | Metro Healthcare vs. Surya Permata Andalan |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |