Correlation Between Aneka Tambang and Duketon Mining
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Duketon Mining 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 Duketon Mining 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 Duketon Mining, you can compare the effects of market volatilities on Aneka Tambang and Duketon Mining 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 Duketon Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Duketon Mining.
Diversification Opportunities for Aneka Tambang and Duketon Mining
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aneka and Duketon is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and Duketon Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duketon Mining 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 Duketon Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duketon Mining has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Duketon Mining go up and down completely randomly.
Pair Corralation between Aneka Tambang and Duketon Mining
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to generate 0.46 times more return on investment than Duketon Mining. However, Aneka Tambang Tbk is 2.18 times less risky than Duketon Mining. It trades about 0.08 of its potential returns per unit of risk. Duketon Mining is currently generating about -0.06 per unit of risk. If you would invest 86.00 in Aneka Tambang Tbk on October 17, 2024 and sell it today you would earn a total of 3.00 from holding Aneka Tambang Tbk or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aneka Tambang Tbk vs. Duketon Mining
Performance |
| Timeline |
| Aneka Tambang Tbk |
| Duketon Mining |
Aneka Tambang and Duketon Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and Duketon Mining
The main advantage of trading using opposite Aneka Tambang and Duketon Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, Duketon Mining 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 Duketon Mining will offset losses from the drop in Duketon Mining's long position.| Aneka Tambang vs. Bio Gene Technology | Aneka Tambang vs. Actinogen Medical | Aneka Tambang vs. Retail Food Group | Aneka Tambang vs. Ainsworth Game Technology |
| Duketon Mining vs. Black Rock Mining | Duketon Mining vs. Falcon Metals | Duketon Mining vs. Dalaroo Metals | Duketon Mining vs. Sky 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |