Correlation Between Metro Healthcare and Phapros Tbk
Can any of the company-specific risk be diversified away by investing in both Metro Healthcare and Phapros 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 Metro Healthcare and Phapros Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metro Healthcare Indonesia and Phapros Tbk PT, you can compare the effects of market volatilities on Metro Healthcare and Phapros 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 Metro Healthcare with a short position of Phapros Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Healthcare and Phapros Tbk.
Diversification Opportunities for Metro Healthcare and Phapros Tbk
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Metro and Phapros is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Metro Healthcare Indonesia and Phapros Tbk PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phapros Tbk PT and Metro Healthcare 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 Metro Healthcare Indonesia are associated (or correlated) with Phapros Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phapros Tbk PT has no effect on the direction of Metro Healthcare i.e., Metro Healthcare and Phapros Tbk go up and down completely randomly.
Pair Corralation between Metro Healthcare and Phapros Tbk
Assuming the 90 days trading horizon Metro Healthcare Indonesia is expected to generate 1.02 times more return on investment than Phapros Tbk. However, Metro Healthcare is 1.02 times more volatile than Phapros Tbk PT. It trades about 0.26 of its potential returns per unit of risk. Phapros Tbk PT is currently generating about -0.1 per unit of risk. If you would invest 7,500 in Metro Healthcare Indonesia on September 1, 2024 and sell it today you would earn a total of 9,600 from holding Metro Healthcare Indonesia or generate 128.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 99.21% |
Values | Daily Returns |
Metro Healthcare Indonesia vs. Phapros Tbk PT
Performance |
Timeline |
Metro Healthcare Ind |
Phapros Tbk PT |
Metro Healthcare and Phapros Tbk Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Metro Healthcare and Phapros Tbk
The main advantage of trading using opposite Metro Healthcare and Phapros Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Healthcare position performs unexpectedly, Phapros 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 Phapros Tbk will offset losses from the drop in Phapros Tbk's long position.Metro Healthcare vs. Medikaloka Hermina PT | Metro Healthcare vs. Sarana Meditama Metropolitan | Metro Healthcare vs. Mitra Keluarga Karyasehat | Metro Healthcare vs. Bhakti Multi Artha |
Phapros Tbk vs. Indofarma Tbk | Phapros Tbk vs. Pyridam Farma Tbk | Phapros Tbk vs. Itama Ranoraya | Phapros Tbk vs. Darya Varia Laboratoria Tbk |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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