Correlation Between Anabatic Technologies and Waskita Beton
Can any of the company-specific risk be diversified away by investing in both Anabatic Technologies and Waskita Beton 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 Waskita Beton 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 Waskita Beton Precast, you can compare the effects of market volatilities on Anabatic Technologies and Waskita Beton 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 Waskita Beton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anabatic Technologies and Waskita Beton.
Diversification Opportunities for Anabatic Technologies and Waskita Beton
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anabatic and Waskita is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Anabatic Technologies Tbk and Waskita Beton Precast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waskita Beton Precast 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 Waskita Beton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waskita Beton Precast has no effect on the direction of Anabatic Technologies i.e., Anabatic Technologies and Waskita Beton go up and down completely randomly.
Pair Corralation between Anabatic Technologies and Waskita Beton
Assuming the 90 days trading horizon Anabatic Technologies is expected to generate 5.58 times less return on investment than Waskita Beton. But when comparing it to its historical volatility, Anabatic Technologies Tbk is 2.67 times less risky than Waskita Beton. It trades about 0.03 of its potential returns per unit of risk. Waskita Beton Precast is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,300 in Waskita Beton Precast on September 1, 2024 and sell it today you would earn a total of 400.00 from holding Waskita Beton Precast or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anabatic Technologies Tbk vs. Waskita Beton Precast
Performance |
| Timeline |
| Anabatic Technologies Tbk |
| Waskita Beton Precast |
Anabatic Technologies and Waskita Beton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anabatic Technologies and Waskita Beton
The main advantage of trading using opposite Anabatic Technologies and Waskita Beton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anabatic Technologies position performs unexpectedly, Waskita Beton 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 Waskita Beton will offset losses from the drop in Waskita Beton'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 |
| Waskita Beton vs. Intermedia Capital Tbk | Waskita Beton vs. Bank Ocbc Nisp | Waskita Beton vs. Krakatau Steel Persero | Waskita Beton vs. First Media 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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