Correlation Between Aneka Tambang and TTG Fintech
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and TTG Fintech 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 TTG Fintech 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 TTG Fintech, you can compare the effects of market volatilities on Aneka Tambang and TTG Fintech 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 TTG Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and TTG Fintech.
Diversification Opportunities for Aneka Tambang and TTG Fintech
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aneka and TTG is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and TTG Fintech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTG Fintech 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 TTG Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTG Fintech has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and TTG Fintech go up and down completely randomly.
Pair Corralation between Aneka Tambang and TTG Fintech
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to under-perform the TTG Fintech. But the stock apears to be less risky and, when comparing its historical volatility, Aneka Tambang Tbk is 1.66 times less risky than TTG Fintech. The stock trades about -0.13 of its potential returns per unit of risk. The TTG Fintech is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 0.50 in TTG Fintech on August 29, 2024 and sell it today you would earn a total of 0.10 from holding TTG Fintech or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aneka Tambang Tbk vs. TTG Fintech
Performance |
| Timeline |
| Aneka Tambang Tbk |
| TTG Fintech |
Aneka Tambang and TTG Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and TTG Fintech
The main advantage of trading using opposite Aneka Tambang and TTG Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, TTG Fintech 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 TTG Fintech will offset losses from the drop in TTG Fintech's long position.| Aneka Tambang vs. Actinogen Medical | Aneka Tambang vs. TTG Fintech | Aneka Tambang vs. IDP Education | Aneka Tambang vs. G8 Education |
| TTG Fintech vs. Aneka Tambang Tbk | TTG Fintech vs. ANZ Group Holdings | TTG Fintech vs. Australia and New | TTG Fintech vs. Commonwealth Bank |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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