Correlation Between Aneka Tambang and Spacetalk
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Spacetalk 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 Spacetalk 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 Spacetalk, you can compare the effects of market volatilities on Aneka Tambang and Spacetalk 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 Spacetalk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Spacetalk.
Diversification Opportunities for Aneka Tambang and Spacetalk
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aneka and Spacetalk is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and Spacetalk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spacetalk 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 Spacetalk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spacetalk has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Spacetalk go up and down completely randomly.
Pair Corralation between Aneka Tambang and Spacetalk
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to generate 0.06 times more return on investment than Spacetalk. However, Aneka Tambang Tbk is 15.45 times less risky than Spacetalk. It trades about 0.0 of its potential returns per unit of risk. Spacetalk is currently generating about -0.09 per unit of risk. If you would invest 90.00 in Aneka Tambang Tbk on November 6, 2024 and sell it today you would earn a total of 0.00 from holding Aneka Tambang Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aneka Tambang Tbk vs. Spacetalk
Performance |
| Timeline |
| Aneka Tambang Tbk |
| Spacetalk |
Aneka Tambang and Spacetalk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and Spacetalk
The main advantage of trading using opposite Aneka Tambang and Spacetalk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, Spacetalk 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 Spacetalk will offset losses from the drop in Spacetalk's long position.| Aneka Tambang vs. Perseus Mining | Aneka Tambang vs. Charter Hall Retail | Aneka Tambang vs. ACDC Metals | Aneka Tambang vs. Retail Food Group |
| Spacetalk vs. Duxton Broadacre Farms | Spacetalk vs. My Foodie Box | Spacetalk vs. Cosmo Metals | Spacetalk vs. Saferoads 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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