Correlation Between Anabatic Technologies and Bank Nationalnobu
Can any of the company-specific risk be diversified away by investing in both Anabatic Technologies and Bank Nationalnobu 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 Bank Nationalnobu 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 Bank Nationalnobu Tbk, you can compare the effects of market volatilities on Anabatic Technologies and Bank Nationalnobu 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 Bank Nationalnobu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anabatic Technologies and Bank Nationalnobu.
Diversification Opportunities for Anabatic Technologies and Bank Nationalnobu
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Anabatic and Bank is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Anabatic Technologies Tbk and Bank Nationalnobu Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Nationalnobu Tbk 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 Bank Nationalnobu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Nationalnobu Tbk has no effect on the direction of Anabatic Technologies i.e., Anabatic Technologies and Bank Nationalnobu go up and down completely randomly.
Pair Corralation between Anabatic Technologies and Bank Nationalnobu
Assuming the 90 days trading horizon Anabatic Technologies is expected to generate 3.13 times less return on investment than Bank Nationalnobu. But when comparing it to its historical volatility, Anabatic Technologies Tbk is 1.35 times less risky than Bank Nationalnobu. It trades about 0.02 of its potential returns per unit of risk. Bank Nationalnobu Tbk is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 47,200 in Bank Nationalnobu Tbk on September 2, 2024 and sell it today you would earn a total of 21,300 from holding Bank Nationalnobu Tbk or generate 45.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anabatic Technologies Tbk vs. Bank Nationalnobu Tbk
Performance |
| Timeline |
| Anabatic Technologies Tbk |
| Bank Nationalnobu Tbk |
Anabatic Technologies and Bank Nationalnobu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anabatic Technologies and Bank Nationalnobu
The main advantage of trading using opposite Anabatic Technologies and Bank Nationalnobu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anabatic Technologies position performs unexpectedly, Bank Nationalnobu 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 Bank Nationalnobu will offset losses from the drop in Bank Nationalnobu'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 |
| Bank Nationalnobu vs. HK Metals Utama | Bank Nationalnobu vs. Equity Development Investment | Bank Nationalnobu vs. Trinitan Metals and | Bank Nationalnobu vs. Garuda Metalindo 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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