Correlation Between Aneka Tambang and Bell Financial
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Bell Financial 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 Bell Financial 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 Bell Financial Group, you can compare the effects of market volatilities on Aneka Tambang and Bell Financial 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 Bell Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Bell Financial.
Diversification Opportunities for Aneka Tambang and Bell Financial
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aneka and Bell is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and Bell Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bell Financial Group 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 Bell Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bell Financial Group has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Bell Financial go up and down completely randomly.
Pair Corralation between Aneka Tambang and Bell Financial
Assuming the 90 days trading horizon Aneka Tambang is expected to generate 65.67 times less return on investment than Bell Financial. But when comparing it to its historical volatility, Aneka Tambang Tbk is 2.69 times less risky than Bell Financial. It trades about 0.0 of its potential returns per unit of risk. Bell Financial Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 135.00 in Bell Financial Group on November 3, 2024 and sell it today you would earn a total of 1.00 from holding Bell Financial Group or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aneka Tambang Tbk vs. Bell Financial Group
Performance |
| Timeline |
| Aneka Tambang Tbk |
| Bell Financial Group |
Aneka Tambang and Bell Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and Bell Financial
The main advantage of trading using opposite Aneka Tambang and Bell Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, Bell Financial 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 Bell Financial will offset losses from the drop in Bell Financial's long position.| Aneka Tambang vs. Infomedia | Aneka Tambang vs. Ainsworth Game Technology | Aneka Tambang vs. Neurotech International | Aneka Tambang vs. Autosports Group |
| Bell Financial vs. Aneka Tambang Tbk | Bell Financial vs. BHP Group Limited | Bell Financial vs. Ecofibre | Bell Financial vs. iShares Global Healthcare |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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