Correlation Between Aneka Tambang and Garda Diversified
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Garda Diversified 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 Garda Diversified 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 Garda Diversified Ppty, you can compare the effects of market volatilities on Aneka Tambang and Garda Diversified 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 Garda Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Garda Diversified.
Diversification Opportunities for Aneka Tambang and Garda Diversified
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aneka and Garda is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and Garda Diversified Ppty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garda Diversified Ppty 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 Garda Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garda Diversified Ppty has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Garda Diversified go up and down completely randomly.
Pair Corralation between Aneka Tambang and Garda Diversified
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to under-perform the Garda Diversified. In addition to that, Aneka Tambang is 1.7 times more volatile than Garda Diversified Ppty. It trades about -0.14 of its total potential returns per unit of risk. Garda Diversified Ppty is currently generating about 0.06 per unit of volatility. If you would invest 117.00 in Garda Diversified Ppty on August 28, 2024 and sell it today you would earn a total of 4.00 from holding Garda Diversified Ppty or generate 3.42% 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. Garda Diversified Ppty
Performance |
| Timeline |
| Aneka Tambang Tbk |
| Garda Diversified Ppty |
Aneka Tambang and Garda Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and Garda Diversified
The main advantage of trading using opposite Aneka Tambang and Garda Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, Garda Diversified 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 Garda Diversified will offset losses from the drop in Garda Diversified's long position.| Aneka Tambang vs. Hawsons Iron | Aneka Tambang vs. Carlton Investments | Aneka Tambang vs. MFF Capital Investments | Aneka Tambang vs. Mount Gibson Iron |
| Garda Diversified vs. Scentre Group | Garda Diversified vs. Vicinity Centres Re | Garda Diversified vs. Charter Hall Retail | Garda Diversified vs. Cromwell Property Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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