Correlation Between Tower Bersama and Medikaloka Hermina
Can any of the company-specific risk be diversified away by investing in both Tower Bersama and Medikaloka Hermina 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 Tower Bersama and Medikaloka Hermina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tower Bersama Infrastructure and Medikaloka Hermina PT, you can compare the effects of market volatilities on Tower Bersama and Medikaloka Hermina 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 Tower Bersama with a short position of Medikaloka Hermina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tower Bersama and Medikaloka Hermina.
Diversification Opportunities for Tower Bersama and Medikaloka Hermina
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tower and Medikaloka is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Tower Bersama Infrastructure and Medikaloka Hermina PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medikaloka Hermina and Tower Bersama 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 Tower Bersama Infrastructure are associated (or correlated) with Medikaloka Hermina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medikaloka Hermina has no effect on the direction of Tower Bersama i.e., Tower Bersama and Medikaloka Hermina go up and down completely randomly.
Pair Corralation between Tower Bersama and Medikaloka Hermina
Assuming the 90 days trading horizon Tower Bersama is expected to generate 1.18 times less return on investment than Medikaloka Hermina. But when comparing it to its historical volatility, Tower Bersama Infrastructure is 1.24 times less risky than Medikaloka Hermina. It trades about 0.02 of its potential returns per unit of risk. Medikaloka Hermina PT is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 127,009 in Medikaloka Hermina PT on November 27, 2024 and sell it today you would earn a total of 14,991 from holding Medikaloka Hermina PT or generate 11.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tower Bersama Infrastructure vs. Medikaloka Hermina PT
Performance |
| Timeline |
| Tower Bersama Infras |
| Medikaloka Hermina |
Tower Bersama and Medikaloka Hermina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tower Bersama and Medikaloka Hermina
The main advantage of trading using opposite Tower Bersama and Medikaloka Hermina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tower Bersama position performs unexpectedly, Medikaloka Hermina 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 Medikaloka Hermina will offset losses from the drop in Medikaloka Hermina's long position.| Tower Bersama vs. PT Sarana Menara | Tower Bersama vs. XL Axiata Tbk | Tower Bersama vs. Merdeka Copper Gold | Tower Bersama vs. Surya Citra Media |
| Medikaloka Hermina vs. Mitra Keluarga Karyasehat | Medikaloka Hermina vs. Siloam International Hospitals | Medikaloka Hermina vs. Prodia Widyahusada Tbk | Medikaloka Hermina vs. Sumber Alfaria Trijaya |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |