Correlation Between Aneka Tambang and Hub24
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Hub24 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 Hub24 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 Hub24, you can compare the effects of market volatilities on Aneka Tambang and Hub24 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 Hub24. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Hub24.
Diversification Opportunities for Aneka Tambang and Hub24
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aneka and Hub24 is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and Hub24 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hub24 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 Hub24. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hub24 has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Hub24 go up and down completely randomly.
Pair Corralation between Aneka Tambang and Hub24
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to under-perform the Hub24. But the stock apears to be less risky and, when comparing its historical volatility, Aneka Tambang Tbk is 1.18 times less risky than Hub24. The stock trades about -0.01 of its potential returns per unit of risk. The Hub24 is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,524 in Hub24 on August 30, 2024 and sell it today you would earn a total of 4,896 from holding Hub24 or generate 193.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aneka Tambang Tbk vs. Hub24
Performance |
| Timeline |
| Aneka Tambang Tbk |
| Hub24 |
Aneka Tambang and Hub24 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and Hub24
The main advantage of trading using opposite Aneka Tambang and Hub24 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, Hub24 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 Hub24 will offset losses from the drop in Hub24's long position.| Aneka Tambang vs. Actinogen Medical | Aneka Tambang vs. TTG Fintech | Aneka Tambang vs. IDP Education | Aneka Tambang vs. G8 Education |
| Hub24 vs. TTG Fintech | Hub24 vs. Aurelia Metals | Hub24 vs. Retail Food Group | Hub24 vs. Richmond Vanadium Technology |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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