Correlation Between Aneka Tambang and Bendigo
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Bendigo 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 Bendigo 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 Bendigo And Adelaide, you can compare the effects of market volatilities on Aneka Tambang and Bendigo 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 Bendigo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Bendigo.
Diversification Opportunities for Aneka Tambang and Bendigo
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aneka and Bendigo is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and Bendigo And Adelaide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bendigo And Adelaide 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 Bendigo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bendigo And Adelaide has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Bendigo go up and down completely randomly.
Pair Corralation between Aneka Tambang and Bendigo
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to under-perform the Bendigo. In addition to that, Aneka Tambang is 1.02 times more volatile than Bendigo And Adelaide. It trades about -0.03 of its total potential returns per unit of risk. Bendigo And Adelaide is currently generating about 0.14 per unit of volatility. If you would invest 759.00 in Bendigo And Adelaide on August 31, 2024 and sell it today you would earn a total of 583.00 from holding Bendigo And Adelaide or generate 76.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aneka Tambang Tbk vs. Bendigo And Adelaide
Performance |
| Timeline |
| Aneka Tambang Tbk |
| Bendigo And Adelaide |
Aneka Tambang and Bendigo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and Bendigo
The main advantage of trading using opposite Aneka Tambang and Bendigo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, Bendigo 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 Bendigo will offset losses from the drop in Bendigo's long position.| Aneka Tambang vs. American West Metals | Aneka Tambang vs. Super Retail Group | Aneka Tambang vs. Computershare | Aneka Tambang vs. Alto Metals |
| Bendigo vs. Alternative Investment Trust | Bendigo vs. Auctus Alternative Investments | Bendigo vs. Centuria Industrial Reit | Bendigo vs. REGAL ASIAN INVESTMENTS |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |