Correlation Between Bell Financial and Aneka Tambang
Can any of the company-specific risk be diversified away by investing in both Bell Financial and Aneka Tambang 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 Bell Financial and Aneka Tambang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bell Financial Group and Aneka Tambang Tbk, you can compare the effects of market volatilities on Bell Financial and Aneka Tambang 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 Bell Financial with a short position of Aneka Tambang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bell Financial and Aneka Tambang.
Diversification Opportunities for Bell Financial and Aneka Tambang
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bell and Aneka is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bell Financial Group and Aneka Tambang Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aneka Tambang Tbk and Bell Financial 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 Bell Financial Group are associated (or correlated) with Aneka Tambang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aneka Tambang Tbk has no effect on the direction of Bell Financial i.e., Bell Financial and Aneka Tambang go up and down completely randomly.
Pair Corralation between Bell Financial and Aneka Tambang
Assuming the 90 days trading horizon Bell Financial Group is expected to generate 1.31 times more return on investment than Aneka Tambang. However, Bell Financial is 1.31 times more volatile than Aneka Tambang Tbk. It trades about 0.02 of its potential returns per unit of risk. Aneka Tambang Tbk is currently generating about -0.05 per unit of risk. If you would invest 123.00 in Bell Financial Group on September 12, 2024 and sell it today you would earn a total of 8.00 from holding Bell Financial Group or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bell Financial Group vs. Aneka Tambang Tbk
Performance |
| Timeline |
| Bell Financial Group |
| Aneka Tambang Tbk |
Bell Financial and Aneka Tambang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bell Financial and Aneka Tambang
The main advantage of trading using opposite Bell Financial and Aneka Tambang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bell Financial position performs unexpectedly, Aneka Tambang 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 Aneka Tambang will offset losses from the drop in Aneka Tambang's long position.| Bell Financial vs. Aneka Tambang Tbk | Bell Financial vs. Commonwealth Bank | Bell Financial vs. BHP Group Limited | Bell Financial vs. Rio Tinto |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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