Correlation Between Austal and Aneka Tambang
Can any of the company-specific risk be diversified away by investing in both Austal and Aneka Tambang 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 Austal and Aneka Tambang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Austal and Aneka Tambang Tbk, you can compare the effects of market volatilities on Austal and Aneka Tambang 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 Austal with a short position of Aneka Tambang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austal and Aneka Tambang.
Diversification Opportunities for Austal and Aneka Tambang
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Austal and Aneka is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Austal and Aneka Tambang Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aneka Tambang Tbk and Austal 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 Austal are associated (or correlated) with Aneka Tambang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aneka Tambang Tbk has no effect on the direction of Austal i.e., Austal and Aneka Tambang go up and down completely randomly.
Pair Corralation between Austal and Aneka Tambang
Assuming the 90 days trading horizon Austal is expected to generate 2.15 times more return on investment than Aneka Tambang. However, Austal is 2.15 times more volatile than Aneka Tambang Tbk. It trades about 0.04 of its potential returns per unit of risk. Aneka Tambang Tbk is currently generating about 0.02 per unit of risk. If you would invest 205.00 in Austal on September 5, 2024 and sell it today you would earn a total of 111.00 from holding Austal or generate 54.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austal vs. Aneka Tambang Tbk
Performance |
| Timeline |
| Austal |
| Aneka Tambang Tbk |
Austal and Aneka Tambang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austal and Aneka Tambang
The main advantage of trading using opposite Austal and Aneka Tambang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austal position performs unexpectedly, Aneka Tambang 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 Aneka Tambang will offset losses from the drop in Aneka Tambang's long position.| Austal vs. Aneka Tambang Tbk | Austal vs. BHP Group Limited | Austal vs. Commonwealth Bank of | Austal vs. Commonwealth Bank of |
| Aneka Tambang vs. Home Consortium | Aneka Tambang vs. Singular Health Group | Aneka Tambang vs. Oneview Healthcare PLC | Aneka Tambang vs. Regis Healthcare |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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