Correlation Between Medikaloka Hermina and Visi Media

Can any of the company-specific risk be diversified away by investing in both Medikaloka Hermina and Visi Media 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 Visi Media 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 Visi Media Asia, you can compare the effects of market volatilities on Medikaloka Hermina and Visi Media 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 Visi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medikaloka Hermina and Visi Media.

Diversification Opportunities for Medikaloka Hermina and Visi Media

0.0

Correlation Coefficient

Medikaloka Hermina  Visi Media

Pay attention - limited upside

The 3 months correlation between Medikaloka and Visi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Medikaloka Hermina PT and Visi Media Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visi Media Asia 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 Visi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visi Media Asia has no effect on the direction of Medikaloka Hermina i.e., Medikaloka Hermina and Visi Media go up and down completely randomly.

Pair Corralation between Medikaloka Hermina and Visi Media

If you would invest  140,500  in Medikaloka Hermina PT on September 17, 2024 and sell it today you would earn a total of  4,000  from holding Medikaloka Hermina PT or generate 2.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Medikaloka Hermina PT  vs.  Visi Media Asia

Medikaloka Hermina

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Medikaloka Hermina PT are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Medikaloka Hermina is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Visi Media Asia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Visi Media Asia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Visi Media is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Medikaloka Hermina and Visi Media

The main advantage of trading using opposite Medikaloka Hermina and Visi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medikaloka Hermina position performs unexpectedly, Visi Media 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 Visi Media will offset losses from the drop in Visi Media's long position.

The idea behind Medikaloka Hermina PT and Visi Media Asia pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.