Correlation Between Aneka Tambang and COG Financial
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and COG 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 COG 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 COG Financial Services, you can compare the effects of market volatilities on Aneka Tambang and COG 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 COG Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and COG Financial.
Diversification Opportunities for Aneka Tambang and COG Financial
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aneka and COG is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and COG Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COG Financial Services 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 COG Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COG Financial Services has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and COG Financial go up and down completely randomly.
Pair Corralation between Aneka Tambang and COG Financial
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to generate 0.18 times more return on investment than COG Financial. However, Aneka Tambang Tbk is 5.41 times less risky than COG Financial. It trades about 0.0 of its potential returns per unit of risk. COG Financial Services is currently generating about -0.13 per unit of risk. If you would invest 90.00 in Aneka Tambang Tbk on November 7, 2024 and sell it today you would earn a total of 0.00 from holding Aneka Tambang Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Aneka Tambang Tbk vs. COG Financial Services
Performance |
| Timeline |
| Aneka Tambang Tbk |
| COG Financial Services |
Aneka Tambang and COG Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and COG Financial
The main advantage of trading using opposite Aneka Tambang and COG Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, COG 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 COG Financial will offset losses from the drop in COG Financial's long position.| Aneka Tambang vs. Kkr Credit Income | Aneka Tambang vs. Ras Technology Holdings | Aneka Tambang vs. Sequoia Financial Group | Aneka Tambang vs. Auswide Bank |
| COG Financial vs. Home Consortium | COG Financial vs. WiseTech Global Limited | COG Financial vs. Zoom2u Technologies | COG Financial vs. Complii FinTech Solutions |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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