Correlation Between Aneka Tambang and AiMedia Technologies
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and AiMedia Technologies 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 AiMedia Technologies 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 AiMedia Technologies, you can compare the effects of market volatilities on Aneka Tambang and AiMedia Technologies 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 AiMedia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and AiMedia Technologies.
Diversification Opportunities for Aneka Tambang and AiMedia Technologies
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aneka and AiMedia is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and AiMedia Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AiMedia Technologies 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 AiMedia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AiMedia Technologies has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and AiMedia Technologies go up and down completely randomly.
Pair Corralation between Aneka Tambang and AiMedia Technologies
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to under-perform the AiMedia Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Aneka Tambang Tbk is 2.27 times less risky than AiMedia Technologies. The stock trades about -0.1 of its potential returns per unit of risk. The AiMedia Technologies is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 85.00 in AiMedia Technologies on September 2, 2024 and sell it today you would lose (3.00) from holding AiMedia Technologies or give up 3.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aneka Tambang Tbk vs. AiMedia Technologies
Performance |
| Timeline |
| Aneka Tambang Tbk |
| AiMedia Technologies |
Aneka Tambang and AiMedia Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and AiMedia Technologies
The main advantage of trading using opposite Aneka Tambang and AiMedia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, AiMedia Technologies 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 AiMedia Technologies will offset losses from the drop in AiMedia Technologies' long position.| Aneka Tambang vs. Bio Gene Technology | Aneka Tambang vs. MFF Capital Investments | Aneka Tambang vs. Auctus Alternative Investments | Aneka Tambang vs. ABACUS STORAGE KING |
| AiMedia Technologies vs. iShares Global Healthcare | AiMedia Technologies vs. Australian Dairy Farms | AiMedia Technologies vs. Adriatic Metals Plc | AiMedia Technologies vs. Australian Agricultural |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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