Correlation Between Metrodata Electronics and Yelooo Integra
Can any of the company-specific risk be diversified away by investing in both Metrodata Electronics and Yelooo Integra 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 Yelooo Integra 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 Yelooo Integra Datanet, you can compare the effects of market volatilities on Metrodata Electronics and Yelooo Integra 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 Yelooo Integra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metrodata Electronics and Yelooo Integra.
Diversification Opportunities for Metrodata Electronics and Yelooo Integra
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Metrodata and Yelooo is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Metrodata Electronics Tbk and Yelooo Integra Datanet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yelooo Integra Datanet 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 Yelooo Integra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yelooo Integra Datanet has no effect on the direction of Metrodata Electronics i.e., Metrodata Electronics and Yelooo Integra go up and down completely randomly.
Pair Corralation between Metrodata Electronics and Yelooo Integra
Assuming the 90 days trading horizon Metrodata Electronics Tbk is expected to generate 0.29 times more return on investment than Yelooo Integra. However, Metrodata Electronics Tbk is 3.43 times less risky than Yelooo Integra. It trades about -0.09 of its potential returns per unit of risk. Yelooo Integra Datanet is currently generating about -0.06 per unit of risk. If you would invest 64,000 in Metrodata Electronics Tbk on September 2, 2024 and sell it today you would lose (1,500) from holding Metrodata Electronics Tbk or give up 2.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metrodata Electronics Tbk vs. Yelooo Integra Datanet
Performance |
| Timeline |
| Metrodata Electronics Tbk |
| Yelooo Integra Datanet |
Metrodata Electronics and Yelooo Integra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metrodata Electronics and Yelooo Integra
The main advantage of trading using opposite Metrodata Electronics and Yelooo Integra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metrodata Electronics position performs unexpectedly, Yelooo Integra 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 Yelooo Integra will offset losses from the drop in Yelooo Integra'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 |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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