Correlation Between Aneka Tambang and Singular Health
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Singular Health 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 Singular Health 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 Singular Health Group, you can compare the effects of market volatilities on Aneka Tambang and Singular Health 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 Singular Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Singular Health.
Diversification Opportunities for Aneka Tambang and Singular Health
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aneka and Singular is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and Singular Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singular Health Group 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 Singular Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singular Health Group has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Singular Health go up and down completely randomly.
Pair Corralation between Aneka Tambang and Singular Health
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to under-perform the Singular Health. But the stock apears to be less risky and, when comparing its historical volatility, Aneka Tambang Tbk is 5.99 times less risky than Singular Health. The stock trades about -0.06 of its potential returns per unit of risk. The Singular Health Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 4.00 in Singular Health Group on September 5, 2024 and sell it today you would earn a total of 8.00 from holding Singular Health Group or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Aneka Tambang Tbk vs. Singular Health Group
Performance |
| Timeline |
| Aneka Tambang Tbk |
| Singular Health Group |
Aneka Tambang and Singular Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and Singular Health
The main advantage of trading using opposite Aneka Tambang and Singular Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, Singular Health 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 Singular Health will offset losses from the drop in Singular Health'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 |
| Singular Health vs. Aneka Tambang Tbk | Singular Health vs. BHP Group Limited | Singular Health vs. Commonwealth Bank of | Singular Health 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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