Correlation Between Aneka Tambang and Step One
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Step One 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 Step One 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 Step One Clothing, you can compare the effects of market volatilities on Aneka Tambang and Step One 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 Step One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Step One.
Diversification Opportunities for Aneka Tambang and Step One
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aneka and Step is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and Step One Clothing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Step One Clothing 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 Step One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Step One Clothing has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Step One go up and down completely randomly.
Pair Corralation between Aneka Tambang and Step One
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to under-perform the Step One. But the stock apears to be less risky and, when comparing its historical volatility, Aneka Tambang Tbk is 3.94 times less risky than Step One. The stock trades about -0.05 of its potential returns per unit of risk. The Step One Clothing is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 31.00 in Step One Clothing on August 28, 2024 and sell it today you would earn a total of 102.00 from holding Step One Clothing or generate 329.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Aneka Tambang Tbk vs. Step One Clothing
Performance |
| Timeline |
| Aneka Tambang Tbk |
| Step One Clothing |
Aneka Tambang and Step One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and Step One
The main advantage of trading using opposite Aneka Tambang and Step One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, Step One 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 Step One will offset losses from the drop in Step One'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 |
| Step One vs. Macquarie Group | Step One vs. Macquarie Group Ltd | Step One vs. Commonwealth Bank | Step One vs. Rio Tinto |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |