Correlation Between Metrodata Electronics and HK Metals
Can any of the company-specific risk be diversified away by investing in both Metrodata Electronics and HK Metals 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 HK Metals 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 HK Metals Utama, you can compare the effects of market volatilities on Metrodata Electronics and HK Metals 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 HK Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metrodata Electronics and HK Metals.
Diversification Opportunities for Metrodata Electronics and HK Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Metrodata and HKMU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Metrodata Electronics Tbk and HK Metals Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HK Metals Utama 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 HK Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HK Metals Utama has no effect on the direction of Metrodata Electronics i.e., Metrodata Electronics and HK Metals go up and down completely randomly.
Pair Corralation between Metrodata Electronics and HK Metals
If you would invest 50,084 in Metrodata Electronics Tbk on August 28, 2024 and sell it today you would earn a total of 12,416 from holding Metrodata Electronics Tbk or generate 24.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.49% |
| Values | Daily Returns |
Metrodata Electronics Tbk vs. HK Metals Utama
Performance |
| Timeline |
| Metrodata Electronics Tbk |
| HK Metals Utama |
Metrodata Electronics and HK Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metrodata Electronics and HK Metals
The main advantage of trading using opposite Metrodata Electronics and HK Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metrodata Electronics position performs unexpectedly, HK Metals 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 HK Metals will offset losses from the drop in HK Metals' long position.| Metrodata Electronics vs. Multipolar Tbk | Metrodata Electronics vs. Astra Graphia Tbk | Metrodata Electronics vs. Matahari Putra Prima | Metrodata Electronics vs. Ramayana Lestari Sentosa |
| HK Metals vs. PT Indonesia Kendaraan | HK Metals vs. Wijaya Karya Bangunan | HK Metals vs. Buyung Poetra Sembada | HK Metals vs. J Resources Asia |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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