Correlation Between Aneka Tambang and WiseTech Global
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and WiseTech Global 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 WiseTech Global 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 WiseTech Global Limited, you can compare the effects of market volatilities on Aneka Tambang and WiseTech Global 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 WiseTech Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and WiseTech Global.
Diversification Opportunities for Aneka Tambang and WiseTech Global
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aneka and WiseTech is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and WiseTech Global Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WiseTech Global 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 WiseTech Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WiseTech Global has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and WiseTech Global go up and down completely randomly.
Pair Corralation between Aneka Tambang and WiseTech Global
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to generate 0.21 times more return on investment than WiseTech Global. However, Aneka Tambang Tbk is 4.77 times less risky than WiseTech Global. It trades about 0.0 of its potential returns per unit of risk. WiseTech Global Limited is currently generating about -0.05 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. WiseTech Global Limited
Performance |
| Timeline |
| Aneka Tambang Tbk |
| WiseTech Global |
Aneka Tambang and WiseTech Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and WiseTech Global
The main advantage of trading using opposite Aneka Tambang and WiseTech Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, WiseTech Global 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 WiseTech Global will offset losses from the drop in WiseTech Global'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 |
| WiseTech Global vs. Metals X | WiseTech Global vs. Stelar Metals | WiseTech Global vs. Bailador Technology Invest | WiseTech Global vs. Computershare |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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