Correlation Between Aneka Tambang and Adisyn
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Adisyn 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 Aneka Tambang and Adisyn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aneka Tambang Tbk and Adisyn, you can compare the effects of market volatilities on Aneka Tambang and Adisyn 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 Aneka Tambang with a short position of Adisyn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Adisyn.
Diversification Opportunities for Aneka Tambang and Adisyn
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aneka and Adisyn is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and Adisyn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adisyn and Aneka Tambang 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 Aneka Tambang Tbk are associated (or correlated) with Adisyn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adisyn has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Adisyn go up and down completely randomly.
Pair Corralation between Aneka Tambang and Adisyn
Assuming the 90 days trading horizon Aneka Tambang is expected to generate 2499.83 times less return on investment than Adisyn. But when comparing it to its historical volatility, Aneka Tambang Tbk is 29.47 times less risky than Adisyn. It trades about 0.0 of its potential returns per unit of risk. Adisyn is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 8.90 in Adisyn on November 3, 2024 and sell it today you would earn a total of 2.10 from holding Adisyn or generate 23.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aneka Tambang Tbk vs. Adisyn
Performance |
| Timeline |
| Aneka Tambang Tbk |
| Adisyn |
Aneka Tambang and Adisyn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and Adisyn
The main advantage of trading using opposite Aneka Tambang and Adisyn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, Adisyn 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 Adisyn will offset losses from the drop in Adisyn's long position.| Aneka Tambang vs. Infomedia | Aneka Tambang vs. Ainsworth Game Technology | Aneka Tambang vs. Neurotech International | Aneka Tambang vs. Autosports Group |
| Adisyn vs. Beam Communications Holdings | Adisyn vs. Perseus Mining | Adisyn vs. Sayona Mining | Adisyn vs. Hutchison Telecommunications |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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