Correlation Between Metrodata Electronics and Astra Graphia
Can any of the company-specific risk be diversified away by investing in both Metrodata Electronics and Astra Graphia 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 Metrodata Electronics and Astra Graphia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metrodata Electronics Tbk and Astra Graphia Tbk, you can compare the effects of market volatilities on Metrodata Electronics and Astra Graphia 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 Metrodata Electronics with a short position of Astra Graphia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metrodata Electronics and Astra Graphia.
Diversification Opportunities for Metrodata Electronics and Astra Graphia
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Metrodata and Astra is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Metrodata Electronics Tbk and Astra Graphia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Graphia Tbk and Metrodata Electronics 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 Metrodata Electronics Tbk are associated (or correlated) with Astra Graphia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Graphia Tbk has no effect on the direction of Metrodata Electronics i.e., Metrodata Electronics and Astra Graphia go up and down completely randomly.
Pair Corralation between Metrodata Electronics and Astra Graphia
Assuming the 90 days trading horizon Metrodata Electronics Tbk is expected to generate 1.06 times more return on investment than Astra Graphia. However, Metrodata Electronics is 1.06 times more volatile than Astra Graphia Tbk. It trades about -0.05 of its potential returns per unit of risk. Astra Graphia Tbk is currently generating about -0.22 per unit of risk. If you would invest 63,000 in Metrodata Electronics Tbk on August 29, 2024 and sell it today you would lose (1,000.00) from holding Metrodata Electronics Tbk or give up 1.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metrodata Electronics Tbk vs. Astra Graphia Tbk
Performance |
| Timeline |
| Metrodata Electronics Tbk |
| Astra Graphia Tbk |
Metrodata Electronics and Astra Graphia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metrodata Electronics and Astra Graphia
The main advantage of trading using opposite Metrodata Electronics and Astra Graphia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metrodata Electronics position performs unexpectedly, Astra Graphia 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 Astra Graphia will offset losses from the drop in Astra Graphia's long position.| Metrodata Electronics vs. M Cash Integrasi | Metrodata Electronics vs. NFC Indonesia PT | Metrodata Electronics vs. Multipolar Technology Tbk | Metrodata Electronics vs. Digital Mediatama Maxima |
| Astra Graphia vs. Astra Otoparts Tbk | Astra Graphia vs. Citra Marga Nusaphala | Astra Graphia vs. Hexindo Adiperkasa Tbk | Astra Graphia vs. Metrodata Electronics Tbk |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |