Correlation Between Medikaloka Hermina and Surya Esa
Can any of the company-specific risk be diversified away by investing in both Medikaloka Hermina and Surya Esa 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 Surya Esa 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 Surya Esa Perkasa, you can compare the effects of market volatilities on Medikaloka Hermina and Surya Esa 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 Surya Esa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medikaloka Hermina and Surya Esa.
Diversification Opportunities for Medikaloka Hermina and Surya Esa
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Medikaloka and Surya is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Medikaloka Hermina PT and Surya Esa Perkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Esa Perkasa 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 Surya Esa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Esa Perkasa has no effect on the direction of Medikaloka Hermina i.e., Medikaloka Hermina and Surya Esa go up and down completely randomly.
Pair Corralation between Medikaloka Hermina and Surya Esa
Assuming the 90 days trading horizon Medikaloka Hermina PT is expected to generate 0.87 times more return on investment than Surya Esa. However, Medikaloka Hermina PT is 1.14 times less risky than Surya Esa. It trades about 0.05 of its potential returns per unit of risk. Surya Esa Perkasa is currently generating about -0.06 per unit of risk. If you would invest 149,500 in Medikaloka Hermina PT on October 8, 2024 and sell it today you would earn a total of 7,500 from holding Medikaloka Hermina PT or generate 5.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Medikaloka Hermina PT vs. Surya Esa Perkasa
Performance |
Timeline |
Medikaloka Hermina |
Surya Esa Perkasa |
Medikaloka Hermina and Surya Esa Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Medikaloka Hermina and Surya Esa
The main advantage of trading using opposite Medikaloka Hermina and Surya Esa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medikaloka Hermina position performs unexpectedly, Surya Esa 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 Surya Esa will offset losses from the drop in Surya Esa'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 |
Surya Esa vs. PT Temas Tbk | Surya Esa vs. Weha Transportasi Indonesia | Surya Esa vs. Rig Tenders Tbk | Surya Esa vs. Rukun Raharja 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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