Correlation Between Aneka Tambang and Ifishdeco
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Ifishdeco 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 Tambang and Ifishdeco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aneka Tambang Persero and Ifishdeco PT, you can compare the effects of market volatilities on Aneka Tambang and Ifishdeco 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 Tambang with a short position of Ifishdeco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Ifishdeco.
Diversification Opportunities for Aneka Tambang and Ifishdeco
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aneka and Ifishdeco is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Persero and Ifishdeco PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ifishdeco PT and Aneka Tambang 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 Tambang Persero are associated (or correlated) with Ifishdeco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ifishdeco PT has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Ifishdeco go up and down completely randomly.
Pair Corralation between Aneka Tambang and Ifishdeco
Assuming the 90 days trading horizon Aneka Tambang Persero is expected to under-perform the Ifishdeco. But the stock apears to be less risky and, when comparing its historical volatility, Aneka Tambang Persero is 1.34 times less risky than Ifishdeco. The stock trades about -0.03 of its potential returns per unit of risk. The Ifishdeco PT is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 96,952 in Ifishdeco PT on August 29, 2024 and sell it today you would lose (19,952) from holding Ifishdeco PT or give up 20.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aneka Tambang Persero vs. Ifishdeco PT
Performance |
| Timeline |
| Aneka Tambang Persero |
| Ifishdeco PT |
Aneka Tambang and Ifishdeco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and Ifishdeco
The main advantage of trading using opposite Aneka Tambang and Ifishdeco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, Ifishdeco 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 Ifishdeco will offset losses from the drop in Ifishdeco's long position.| Aneka Tambang vs. Perusahaan Gas Negara | Aneka Tambang vs. Vale Indonesia Tbk | Aneka Tambang vs. Bukit Asam Tbk | Aneka Tambang vs. Telkom Indonesia Tbk |
| Ifishdeco vs. Gunung Raja Paksi | Ifishdeco vs. Cita Mineral Investindo | Ifishdeco vs. Central Omega Resources | Ifishdeco vs. Indonesia Fibreboard Industry |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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