Correlation Between Aneka Tambang and Infomedia
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Infomedia 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 Infomedia 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 Infomedia, you can compare the effects of market volatilities on Aneka Tambang and Infomedia 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 Infomedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Infomedia.
Diversification Opportunities for Aneka Tambang and Infomedia
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aneka and Infomedia is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and Infomedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infomedia 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 Infomedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infomedia has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Infomedia go up and down completely randomly.
Pair Corralation between Aneka Tambang and Infomedia
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to under-perform the Infomedia. But the stock apears to be less risky and, when comparing its historical volatility, Aneka Tambang Tbk is 1.46 times less risky than Infomedia. The stock trades about -0.1 of its potential returns per unit of risk. The Infomedia is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 138.00 in Infomedia on September 5, 2024 and sell it today you would lose (1.00) from holding Infomedia or give up 0.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aneka Tambang Tbk vs. Infomedia
Performance |
| Timeline |
| Aneka Tambang Tbk |
| Infomedia |
Aneka Tambang and Infomedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and Infomedia
The main advantage of trading using opposite Aneka Tambang and Infomedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, Infomedia 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 Infomedia will offset losses from the drop in Infomedia's long position.| Aneka Tambang vs. Home Consortium | Aneka Tambang vs. Singular Health Group | Aneka Tambang vs. Oneview Healthcare PLC | Aneka Tambang vs. Regis Healthcare |
| Infomedia vs. Aneka Tambang Tbk | Infomedia vs. BHP Group Limited | Infomedia vs. Commonwealth Bank of | Infomedia vs. Commonwealth Bank of |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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