Correlation Between Aneka Tambang and British Amer
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and British Amer 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 British Amer 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 Bailador Technology Invest, you can compare the effects of market volatilities on Aneka Tambang and British Amer 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 British Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and British Amer.
Diversification Opportunities for Aneka Tambang and British Amer
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aneka and British is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and Bailador Technology Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bailador Technology 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 British Amer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bailador Technology has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and British Amer go up and down completely randomly.
Pair Corralation between Aneka Tambang and British Amer
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to under-perform the British Amer. In addition to that, Aneka Tambang is 1.05 times more volatile than Bailador Technology Invest. It trades about -0.06 of its total potential returns per unit of risk. Bailador Technology Invest is currently generating about 0.05 per unit of volatility. If you would invest 111.00 in Bailador Technology Invest on September 1, 2024 and sell it today you would earn a total of 15.00 from holding Bailador Technology Invest or generate 13.51% 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. Bailador Technology Invest
Performance |
| Timeline |
| Aneka Tambang Tbk |
| Bailador Technology |
Aneka Tambang and British Amer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and British Amer
The main advantage of trading using opposite Aneka Tambang and British Amer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, British Amer 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 British Amer will offset losses from the drop in British Amer's long position.| Aneka Tambang vs. Northern Star Resources | Aneka Tambang vs. Evolution Mining | Aneka Tambang vs. Bluescope Steel | Aneka Tambang vs. Sandfire Resources NL |
| British Amer vs. WA1 Resources | British Amer vs. Predictive Discovery | British Amer vs. Cooper Metals | British Amer vs. OD6 Metals |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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