Correlation Between Aneka Tambang and Regal Funds
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Regal Funds 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 Regal Funds 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 Regal Funds Management, you can compare the effects of market volatilities on Aneka Tambang and Regal Funds 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 Regal Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Regal Funds.
Diversification Opportunities for Aneka Tambang and Regal Funds
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aneka and Regal is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and Regal Funds Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regal Funds Management 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 Regal Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regal Funds Management has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Regal Funds go up and down completely randomly.
Pair Corralation between Aneka Tambang and Regal Funds
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to under-perform the Regal Funds. But the stock apears to be less risky and, when comparing its historical volatility, Aneka Tambang Tbk is 2.42 times less risky than Regal Funds. The stock trades about -0.28 of its potential returns per unit of risk. The Regal Funds Management is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 352.00 in Regal Funds Management on October 24, 2024 and sell it today you would earn a total of 21.00 from holding Regal Funds Management or generate 5.97% 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. Regal Funds Management
Performance |
| Timeline |
| Aneka Tambang Tbk |
| Regal Funds Management |
Aneka Tambang and Regal Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and Regal Funds
The main advantage of trading using opposite Aneka Tambang and Regal Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, Regal Funds 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 Regal Funds will offset losses from the drop in Regal Funds' long position.| Aneka Tambang vs. Iron Road | Aneka Tambang vs. Autosports Group | Aneka Tambang vs. Zoom2u Technologies | Aneka Tambang vs. Aristocrat Leisure |
| Regal Funds vs. Aneka Tambang Tbk | Regal Funds vs. Commonwealth Bank of | Regal Funds vs. Australia and New | Regal Funds vs. ANZ 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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