Correlation Between Aneka Tambang and Dalaroo Metals
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Dalaroo Metals 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 Dalaroo Metals 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 Dalaroo Metals, you can compare the effects of market volatilities on Aneka Tambang and Dalaroo Metals 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 Dalaroo Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Dalaroo Metals.
Diversification Opportunities for Aneka Tambang and Dalaroo Metals
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aneka and Dalaroo is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and Dalaroo Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalaroo Metals 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 Dalaroo Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalaroo Metals has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Dalaroo Metals go up and down completely randomly.
Pair Corralation between Aneka Tambang and Dalaroo Metals
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to generate 0.16 times more return on investment than Dalaroo Metals. However, Aneka Tambang Tbk is 6.24 times less risky than Dalaroo Metals. It trades about -0.01 of its potential returns per unit of risk. Dalaroo Metals is currently generating about -0.01 per unit of risk. If you would invest 97.00 in Aneka Tambang Tbk on October 15, 2024 and sell it today you would lose (8.00) from holding Aneka Tambang Tbk or give up 8.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aneka Tambang Tbk vs. Dalaroo Metals
Performance |
| Timeline |
| Aneka Tambang Tbk |
| Dalaroo Metals |
Aneka Tambang and Dalaroo Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and Dalaroo Metals
The main advantage of trading using opposite Aneka Tambang and Dalaroo Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, Dalaroo Metals 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 Dalaroo Metals will offset losses from the drop in Dalaroo Metals' long position.| Aneka Tambang vs. DY6 Metals | Aneka Tambang vs. Ambertech | Aneka Tambang vs. Thorney Technologies | Aneka Tambang vs. Stelar Metals |
| Dalaroo Metals vs. Lendlease Group | Dalaroo Metals vs. Ras Technology Holdings | Dalaroo Metals vs. Ainsworth Game Technology | Dalaroo Metals vs. TPG Telecom |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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