Correlation Between Medikaloka Hermina and Digital Mediatama
Can any of the company-specific risk be diversified away by investing in both Medikaloka Hermina and Digital Mediatama 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 Medikaloka Hermina and Digital Mediatama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medikaloka Hermina PT and Digital Mediatama Maxima, you can compare the effects of market volatilities on Medikaloka Hermina and Digital Mediatama 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 Medikaloka Hermina with a short position of Digital Mediatama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medikaloka Hermina and Digital Mediatama.
Diversification Opportunities for Medikaloka Hermina and Digital Mediatama
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Medikaloka and Digital is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Medikaloka Hermina PT and Digital Mediatama Maxima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Mediatama Maxima and Medikaloka Hermina 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 Medikaloka Hermina PT are associated (or correlated) with Digital Mediatama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Mediatama Maxima has no effect on the direction of Medikaloka Hermina i.e., Medikaloka Hermina and Digital Mediatama go up and down completely randomly.
Pair Corralation between Medikaloka Hermina and Digital Mediatama
Assuming the 90 days trading horizon Medikaloka Hermina is expected to generate 8.8 times less return on investment than Digital Mediatama. But when comparing it to its historical volatility, Medikaloka Hermina PT is 3.02 times less risky than Digital Mediatama. It trades about 0.06 of its potential returns per unit of risk. Digital Mediatama Maxima is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 12,600 in Digital Mediatama Maxima on September 17, 2024 and sell it today you would earn a total of 9,800 from holding Digital Mediatama Maxima or generate 77.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Medikaloka Hermina PT vs. Digital Mediatama Maxima
Performance |
Timeline |
Medikaloka Hermina |
Digital Mediatama Maxima |
Medikaloka Hermina and Digital Mediatama Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Medikaloka Hermina and Digital Mediatama
The main advantage of trading using opposite Medikaloka Hermina and Digital Mediatama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medikaloka Hermina position performs unexpectedly, Digital Mediatama 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 Digital Mediatama will offset losses from the drop in Digital Mediatama's long position.Medikaloka Hermina vs. Mitra Keluarga Karyasehat | Medikaloka Hermina vs. Siloam International Hospitals | Medikaloka Hermina vs. Sumber Alfaria Trijaya | Medikaloka Hermina vs. Elang Mahkota Teknologi |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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