Correlation Between Anabatic Technologies and Graha Andrasentra
Can any of the company-specific risk be diversified away by investing in both Anabatic Technologies and Graha Andrasentra 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 Anabatic Technologies and Graha Andrasentra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anabatic Technologies Tbk and Graha Andrasentra Propertindo, you can compare the effects of market volatilities on Anabatic Technologies and Graha Andrasentra 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 Anabatic Technologies with a short position of Graha Andrasentra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anabatic Technologies and Graha Andrasentra.
Diversification Opportunities for Anabatic Technologies and Graha Andrasentra
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anabatic and Graha is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Anabatic Technologies Tbk and Graha Andrasentra Propertindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graha Andrasentra and Anabatic Technologies 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 Anabatic Technologies Tbk are associated (or correlated) with Graha Andrasentra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graha Andrasentra has no effect on the direction of Anabatic Technologies i.e., Anabatic Technologies and Graha Andrasentra go up and down completely randomly.
Pair Corralation between Anabatic Technologies and Graha Andrasentra
Assuming the 90 days trading horizon Anabatic Technologies Tbk is expected to under-perform the Graha Andrasentra. But the stock apears to be less risky and, when comparing its historical volatility, Anabatic Technologies Tbk is 5.7 times less risky than Graha Andrasentra. The stock trades about -0.12 of its potential returns per unit of risk. The Graha Andrasentra Propertindo is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 700.00 in Graha Andrasentra Propertindo on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Graha Andrasentra Propertindo or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anabatic Technologies Tbk vs. Graha Andrasentra Propertindo
Performance |
| Timeline |
| Anabatic Technologies Tbk |
| Graha Andrasentra |
Anabatic Technologies and Graha Andrasentra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anabatic Technologies and Graha Andrasentra
The main advantage of trading using opposite Anabatic Technologies and Graha Andrasentra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anabatic Technologies position performs unexpectedly, Graha Andrasentra 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 Graha Andrasentra will offset losses from the drop in Graha Andrasentra's long position.| Anabatic Technologies vs. Multipolar Technology Tbk | Anabatic Technologies vs. Abm Investama Tbk | Anabatic Technologies vs. Arita Prima Indonesia | Anabatic Technologies vs. Bali Towerindo Sentra |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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