Correlation Between Aneka Tambang and Oneview Healthcare
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Oneview Healthcare 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 Oneview Healthcare 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 Oneview Healthcare PLC, you can compare the effects of market volatilities on Aneka Tambang and Oneview Healthcare 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 Oneview Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Oneview Healthcare.
Diversification Opportunities for Aneka Tambang and Oneview Healthcare
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aneka and Oneview is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and Oneview Healthcare PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oneview Healthcare PLC 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 Oneview Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oneview Healthcare PLC has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Oneview Healthcare go up and down completely randomly.
Pair Corralation between Aneka Tambang and Oneview Healthcare
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to generate 1.08 times more return on investment than Oneview Healthcare. However, Aneka Tambang is 1.08 times more volatile than Oneview Healthcare PLC. It trades about -0.1 of its potential returns per unit of risk. Oneview Healthcare PLC is currently generating about -0.32 per unit of risk. If you would invest 91.00 in Aneka Tambang Tbk on August 29, 2024 and sell it today you would lose (5.00) from holding Aneka Tambang Tbk or give up 5.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aneka Tambang Tbk vs. Oneview Healthcare PLC
Performance |
| Timeline |
| Aneka Tambang Tbk |
| Oneview Healthcare PLC |
Aneka Tambang and Oneview Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and Oneview Healthcare
The main advantage of trading using opposite Aneka Tambang and Oneview Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, Oneview Healthcare 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 Oneview Healthcare will offset losses from the drop in Oneview Healthcare'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 |
| Oneview Healthcare vs. Accent Resources NL | Oneview Healthcare vs. Hutchison Telecommunications | Oneview Healthcare vs. GO2 People | Oneview Healthcare vs. Pact Group 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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