Correlation Between Medikaloka Hermina and Indosat Tbk
Can any of the company-specific risk be diversified away by investing in both Medikaloka Hermina and Indosat Tbk 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 Indosat Tbk 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 Indosat Tbk, you can compare the effects of market volatilities on Medikaloka Hermina and Indosat Tbk 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 Indosat Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medikaloka Hermina and Indosat Tbk.
Diversification Opportunities for Medikaloka Hermina and Indosat Tbk
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Medikaloka and Indosat is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Medikaloka Hermina PT and Indosat Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indosat Tbk 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 Indosat Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indosat Tbk has no effect on the direction of Medikaloka Hermina i.e., Medikaloka Hermina and Indosat Tbk go up and down completely randomly.
Pair Corralation between Medikaloka Hermina and Indosat Tbk
Assuming the 90 days trading horizon Medikaloka Hermina PT is expected to generate 0.19 times more return on investment than Indosat Tbk. However, Medikaloka Hermina PT is 5.31 times less risky than Indosat Tbk. It trades about -0.01 of its potential returns per unit of risk. Indosat Tbk is currently generating about -0.12 per unit of risk. If you would invest 147,000 in Medikaloka Hermina PT on September 18, 2024 and sell it today you would lose (2,500) from holding Medikaloka Hermina PT or give up 1.7% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Medikaloka Hermina PT vs. Indosat Tbk
Performance |
Timeline |
Medikaloka Hermina |
Indosat Tbk |
Medikaloka Hermina and Indosat Tbk Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Medikaloka Hermina and Indosat Tbk
The main advantage of trading using opposite Medikaloka Hermina and Indosat Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medikaloka Hermina position performs unexpectedly, Indosat Tbk 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 Indosat Tbk will offset losses from the drop in Indosat Tbk's long position.Medikaloka Hermina vs. Mitra Keluarga Karyasehat | Medikaloka Hermina vs. Siloam International Hospitals | Medikaloka Hermina vs. Prodia Widyahusada Tbk | Medikaloka Hermina vs. Sumber Alfaria Trijaya |
Indosat Tbk vs. Mnc Land Tbk | Indosat Tbk vs. MNC Vision Networks | Indosat Tbk vs. Link Net Tbk | Indosat Tbk vs. Medikaloka Hermina PT |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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