Correlation Between Aneka Tambang and Thorney Technologies
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Thorney Technologies 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 Thorney Technologies 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 Thorney Technologies, you can compare the effects of market volatilities on Aneka Tambang and Thorney Technologies 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 Thorney Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Thorney Technologies.
Diversification Opportunities for Aneka Tambang and Thorney Technologies
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aneka and Thorney is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and Thorney Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thorney Technologies 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 Thorney Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thorney Technologies has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Thorney Technologies go up and down completely randomly.
Pair Corralation between Aneka Tambang and Thorney Technologies
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to under-perform the Thorney Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Aneka Tambang Tbk is 1.63 times less risky than Thorney Technologies. The stock trades about -0.1 of its potential returns per unit of risk. The Thorney Technologies is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Thorney Technologies on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Thorney Technologies or generate 0.0% 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. Thorney Technologies
Performance |
| Timeline |
| Aneka Tambang Tbk |
| Thorney Technologies |
Aneka Tambang and Thorney Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and Thorney Technologies
The main advantage of trading using opposite Aneka Tambang and Thorney Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, Thorney Technologies 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 Thorney Technologies will offset losses from the drop in Thorney Technologies' long position.| Aneka Tambang vs. Legacy Iron Ore | Aneka Tambang vs. M3 Mining | Aneka Tambang vs. Perseus Mining | Aneka Tambang vs. Aspire Mining |
| Thorney Technologies vs. Westpac Banking | Thorney Technologies vs. ABACUS STORAGE KING | Thorney Technologies vs. Odyssey Energy | Thorney Technologies vs. Hotel Property Investments |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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