Correlation Between Aneka Gas and Semen Baturaja
Can any of the company-specific risk be diversified away by investing in both Aneka Gas and Semen Baturaja 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 Aneka Gas and Semen Baturaja into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aneka Gas Industri and Semen Baturaja Persero, you can compare the effects of market volatilities on Aneka Gas and Semen Baturaja 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 Aneka Gas with a short position of Semen Baturaja. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Gas and Semen Baturaja.
Diversification Opportunities for Aneka Gas and Semen Baturaja
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aneka and Semen is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Gas Industri and Semen Baturaja Persero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semen Baturaja Persero and Aneka Gas 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 Aneka Gas Industri are associated (or correlated) with Semen Baturaja. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semen Baturaja Persero has no effect on the direction of Aneka Gas i.e., Aneka Gas and Semen Baturaja go up and down completely randomly.
Pair Corralation between Aneka Gas and Semen Baturaja
Assuming the 90 days trading horizon Aneka Gas Industri is expected to generate 0.52 times more return on investment than Semen Baturaja. However, Aneka Gas Industri is 1.93 times less risky than Semen Baturaja. It trades about -0.12 of its potential returns per unit of risk. Semen Baturaja Persero is currently generating about -0.5 per unit of risk. If you would invest 172,000 in Aneka Gas Industri on August 26, 2024 and sell it today you would lose (4,000) from holding Aneka Gas Industri or give up 2.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aneka Gas Industri vs. Semen Baturaja Persero
Performance |
| Timeline |
| Aneka Gas Industri |
| Semen Baturaja Persero |
Aneka Gas and Semen Baturaja Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Gas and Semen Baturaja
The main advantage of trading using opposite Aneka Gas and Semen Baturaja positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Gas position performs unexpectedly, Semen Baturaja 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 Semen Baturaja will offset losses from the drop in Semen Baturaja's long position.| Aneka Gas vs. Surya Esa Perkasa | Aneka Gas vs. Elang Mahkota Teknologi | Aneka Gas vs. Merdeka Copper Gold | Aneka Gas vs. Saratoga Investama Sedaya |
| Semen Baturaja vs. Kedaung Indah Can | Semen Baturaja vs. Langgeng Makmur Industri | Semen Baturaja vs. Kabelindo Murni Tbk | Semen Baturaja vs. Mustika Ratu 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |