Correlation Between Metrodata Electronics and Visi Media
Can any of the company-specific risk be diversified away by investing in both Metrodata Electronics and Visi Media 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 Visi Media 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 Visi Media Asia, you can compare the effects of market volatilities on Metrodata Electronics and Visi Media 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 Visi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metrodata Electronics and Visi Media.
Diversification Opportunities for Metrodata Electronics and Visi Media
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Metrodata and Visi is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Metrodata Electronics Tbk and Visi Media Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visi Media Asia 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 Visi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visi Media Asia has no effect on the direction of Metrodata Electronics i.e., Metrodata Electronics and Visi Media go up and down completely randomly.
Pair Corralation between Metrodata Electronics and Visi Media
Assuming the 90 days trading horizon Metrodata Electronics Tbk is expected to generate 0.54 times more return on investment than Visi Media. However, Metrodata Electronics Tbk is 1.86 times less risky than Visi Media. It trades about 0.02 of its potential returns per unit of risk. Visi Media Asia is currently generating about -0.06 per unit of risk. If you would invest 54,377 in Metrodata Electronics Tbk on November 28, 2024 and sell it today you would earn a total of 5,123 from holding Metrodata Electronics Tbk or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Metrodata Electronics Tbk vs. Visi Media Asia
Performance |
| Timeline |
| Metrodata Electronics Tbk |
| Visi Media Asia |
Metrodata Electronics and Visi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metrodata Electronics and Visi Media
The main advantage of trading using opposite Metrodata Electronics and Visi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metrodata Electronics position performs unexpectedly, Visi Media 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 Visi Media will offset losses from the drop in Visi Media'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 |
| Visi Media vs. Surya Semesta Internusa | Visi Media vs. Bumi Resources Minerals | Visi Media vs. Multipolar Tbk | Visi Media vs. Surya Citra Media |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |