Correlation Between Aneka Tambang and Identitii
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Identitii 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 Identitii 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 Identitii, you can compare the effects of market volatilities on Aneka Tambang and Identitii 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 Identitii. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Identitii.
Diversification Opportunities for Aneka Tambang and Identitii
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aneka and Identitii is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and Identitii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identitii 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 Identitii. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identitii has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Identitii go up and down completely randomly.
Pair Corralation between Aneka Tambang and Identitii
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to generate 0.24 times more return on investment than Identitii. However, Aneka Tambang Tbk is 4.09 times less risky than Identitii. It trades about 0.37 of its potential returns per unit of risk. Identitii is currently generating about 0.03 per unit of risk. If you would invest 90.00 in Aneka Tambang Tbk on November 28, 2024 and sell it today you would earn a total of 10.00 from holding Aneka Tambang Tbk or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aneka Tambang Tbk vs. Identitii
Performance |
| Timeline |
| Aneka Tambang Tbk |
| Identitii |
Aneka Tambang and Identitii Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and Identitii
The main advantage of trading using opposite Aneka Tambang and Identitii positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, Identitii 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 Identitii will offset losses from the drop in Identitii's long position.| Aneka Tambang vs. Apiam Animal Health | Aneka Tambang vs. Health and Plant | Aneka Tambang vs. Carawine Resources Limited | Aneka Tambang vs. Kneomedia |
| Identitii vs. Zeotech | Identitii vs. Vitura Health Limited | Identitii vs. Health and Plant | Identitii vs. Maggie Beer Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |