Correlation Between Aneka Gas and Tirta Mahakam
Can any of the company-specific risk be diversified away by investing in both Aneka Gas and Tirta Mahakam 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 Tirta Mahakam 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 Tirta Mahakam Resources, you can compare the effects of market volatilities on Aneka Gas and Tirta Mahakam 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 Tirta Mahakam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Gas and Tirta Mahakam.
Diversification Opportunities for Aneka Gas and Tirta Mahakam
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aneka and Tirta is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Gas Industri and Tirta Mahakam Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tirta Mahakam Resources 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 Tirta Mahakam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tirta Mahakam Resources has no effect on the direction of Aneka Gas i.e., Aneka Gas and Tirta Mahakam go up and down completely randomly.
Pair Corralation between Aneka Gas and Tirta Mahakam
Assuming the 90 days trading horizon Aneka Gas Industri is expected to under-perform the Tirta Mahakam. But the stock apears to be less risky and, when comparing its historical volatility, Aneka Gas Industri is 6.96 times less risky than Tirta Mahakam. The stock trades about -0.32 of its potential returns per unit of risk. The Tirta Mahakam Resources is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,800 in Tirta Mahakam Resources on August 31, 2024 and sell it today you would lose (100.00) from holding Tirta Mahakam Resources or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aneka Gas Industri vs. Tirta Mahakam Resources
Performance |
| Timeline |
| Aneka Gas Industri |
| Tirta Mahakam Resources |
Aneka Gas and Tirta Mahakam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Gas and Tirta Mahakam
The main advantage of trading using opposite Aneka Gas and Tirta Mahakam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Gas position performs unexpectedly, Tirta Mahakam 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 Tirta Mahakam will offset losses from the drop in Tirta Mahakam's long position.| Aneka Gas vs. Perusahaan Gas Negara | Aneka Gas vs. Vale Indonesia Tbk | Aneka Gas vs. Telkom Indonesia Tbk | Aneka Gas vs. Mitra Pinasthika Mustika |
| Tirta Mahakam vs. Slj Global Tbk | Tirta Mahakam vs. Indo Acidatama Tbk | Tirta Mahakam vs. Trias Sentosa Tbk | Tirta Mahakam vs. Suparma 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |