Correlation Between Anabatic Technologies and Ciptadana Asset
Can any of the company-specific risk be diversified away by investing in both Anabatic Technologies and Ciptadana Asset 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 Ciptadana Asset 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 Ciptadana Asset Management, you can compare the effects of market volatilities on Anabatic Technologies and Ciptadana Asset 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 Ciptadana Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anabatic Technologies and Ciptadana Asset.
Diversification Opportunities for Anabatic Technologies and Ciptadana Asset
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Anabatic and Ciptadana is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Anabatic Technologies Tbk and Ciptadana Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciptadana Asset Mana 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 Ciptadana Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciptadana Asset Mana has no effect on the direction of Anabatic Technologies i.e., Anabatic Technologies and Ciptadana Asset go up and down completely randomly.
Pair Corralation between Anabatic Technologies and Ciptadana Asset
Assuming the 90 days trading horizon Anabatic Technologies Tbk is expected to generate 3.43 times more return on investment than Ciptadana Asset. However, Anabatic Technologies is 3.43 times more volatile than Ciptadana Asset Management. It trades about 0.3 of its potential returns per unit of risk. Ciptadana Asset Management is currently generating about 0.08 per unit of risk. If you would invest 40,400 in Anabatic Technologies Tbk on November 28, 2024 and sell it today you would earn a total of 22,600 from holding Anabatic Technologies Tbk or generate 55.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anabatic Technologies Tbk vs. Ciptadana Asset Management
Performance |
| Timeline |
| Anabatic Technologies Tbk |
| Ciptadana Asset Mana |
Anabatic Technologies and Ciptadana Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anabatic Technologies and Ciptadana Asset
The main advantage of trading using opposite Anabatic Technologies and Ciptadana Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anabatic Technologies position performs unexpectedly, Ciptadana Asset 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 Ciptadana Asset will offset losses from the drop in Ciptadana Asset'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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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