Correlation Between Aneka Tambang and Atomos
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Atomos 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 Atomos 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 Atomos, you can compare the effects of market volatilities on Aneka Tambang and Atomos 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 Atomos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Atomos.
Diversification Opportunities for Aneka Tambang and Atomos
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aneka and Atomos is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and Atomos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomos 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 Atomos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomos has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Atomos go up and down completely randomly.
Pair Corralation between Aneka Tambang and Atomos
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to generate 0.3 times more return on investment than Atomos. However, Aneka Tambang Tbk is 3.35 times less risky than Atomos. It trades about 0.0 of its potential returns per unit of risk. Atomos is currently generating about -0.03 per unit of risk. If you would invest 97.00 in Aneka Tambang Tbk on September 2, 2024 and sell it today you would lose (7.00) from holding Aneka Tambang Tbk or give up 7.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aneka Tambang Tbk vs. Atomos
Performance |
| Timeline |
| Aneka Tambang Tbk |
| Atomos |
Aneka Tambang and Atomos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and Atomos
The main advantage of trading using opposite Aneka Tambang and Atomos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, Atomos 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 Atomos will offset losses from the drop in Atomos' 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 |
| Atomos vs. Audio Pixels Holdings | Atomos vs. Norwest Minerals | Atomos vs. Lindian Resources | Atomos vs. Resource Base |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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