Correlation Between Metrodata Electronics and PT Techno9
Can any of the company-specific risk be diversified away by investing in both Metrodata Electronics and PT Techno9 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 PT Techno9 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 PT Techno9 Indonesia, you can compare the effects of market volatilities on Metrodata Electronics and PT Techno9 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 PT Techno9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metrodata Electronics and PT Techno9.
Diversification Opportunities for Metrodata Electronics and PT Techno9
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Metrodata and NINE is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Metrodata Electronics Tbk and PT Techno9 Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Techno9 Indonesia 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 PT Techno9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Techno9 Indonesia has no effect on the direction of Metrodata Electronics i.e., Metrodata Electronics and PT Techno9 go up and down completely randomly.
Pair Corralation between Metrodata Electronics and PT Techno9
If you would invest 57,500 in Metrodata Electronics Tbk on November 27, 2024 and sell it today you would earn a total of 4,000 from holding Metrodata Electronics Tbk or generate 6.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metrodata Electronics Tbk vs. PT Techno9 Indonesia
Performance |
| Timeline |
| Metrodata Electronics Tbk |
| PT Techno9 Indonesia |
Metrodata Electronics and PT Techno9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metrodata Electronics and PT Techno9
The main advantage of trading using opposite Metrodata Electronics and PT Techno9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metrodata Electronics position performs unexpectedly, PT Techno9 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 PT Techno9 will offset losses from the drop in PT Techno9's 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 |
| PT Techno9 vs. Weha Transportasi Indonesia | PT Techno9 vs. PT UBC Medical | PT Techno9 vs. Arkadia Digital Media | PT Techno9 vs. Smartfren Telecom 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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