Correlation Between Metrodata Electronics and PT Winner
Can any of the company-specific risk be diversified away by investing in both Metrodata Electronics and PT Winner 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 Winner 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 Winner Nusantara, you can compare the effects of market volatilities on Metrodata Electronics and PT Winner 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 Winner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metrodata Electronics and PT Winner.
Diversification Opportunities for Metrodata Electronics and PT Winner
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Metrodata and WINR is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Metrodata Electronics Tbk and PT Winner Nusantara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Winner Nusantara 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 Winner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Winner Nusantara has no effect on the direction of Metrodata Electronics i.e., Metrodata Electronics and PT Winner go up and down completely randomly.
Pair Corralation between Metrodata Electronics and PT Winner
Assuming the 90 days trading horizon Metrodata Electronics Tbk is expected to under-perform the PT Winner. But the stock apears to be less risky and, when comparing its historical volatility, Metrodata Electronics Tbk is 2.47 times less risky than PT Winner. The stock trades about -0.22 of its potential returns per unit of risk. The PT Winner Nusantara is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 1,400 in PT Winner Nusantara on November 4, 2024 and sell it today you would earn a total of 500.00 from holding PT Winner Nusantara or generate 35.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metrodata Electronics Tbk vs. PT Winner Nusantara
Performance |
| Timeline |
| Metrodata Electronics Tbk |
| PT Winner Nusantara |
Metrodata Electronics and PT Winner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metrodata Electronics and PT Winner
The main advantage of trading using opposite Metrodata Electronics and PT Winner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metrodata Electronics position performs unexpectedly, PT Winner 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 Winner will offset losses from the drop in PT Winner's long position.| Metrodata Electronics vs. Multipolar Tbk | Metrodata Electronics vs. Astra Graphia Tbk | Metrodata Electronics vs. Lautan Luas Tbk |
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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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