Correlation Between Bio Gene and Aneka Tambang
Can any of the company-specific risk be diversified away by investing in both Bio Gene 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 Bio Gene and Aneka Tambang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bio Gene Technology and Aneka Tambang Tbk, you can compare the effects of market volatilities on Bio Gene 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 Bio Gene with a short position of Aneka Tambang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio Gene and Aneka Tambang.
Diversification Opportunities for Bio Gene and Aneka Tambang
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bio and Aneka is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bio Gene Technology 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 Bio Gene 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 Bio Gene Technology 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 Bio Gene i.e., Bio Gene and Aneka Tambang go up and down completely randomly.
Pair Corralation between Bio Gene and Aneka Tambang
Assuming the 90 days trading horizon Bio Gene Technology is expected to generate 10.94 times more return on investment than Aneka Tambang. However, Bio Gene is 10.94 times more volatile than Aneka Tambang Tbk. It trades about 0.07 of its potential returns per unit of risk. Aneka Tambang Tbk is currently generating about 0.37 per unit of risk. If you would invest 3.20 in Bio Gene Technology on November 28, 2024 and sell it today you would earn a total of 0.20 from holding Bio Gene Technology or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bio Gene Technology vs. Aneka Tambang Tbk
Performance |
| Timeline |
| Bio Gene Technology |
| Aneka Tambang Tbk |
Bio Gene and Aneka Tambang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bio Gene and Aneka Tambang
The main advantage of trading using opposite Bio Gene and Aneka Tambang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bio Gene 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.| Bio Gene vs. Aussie Broadband | Bio Gene vs. Falcon Metals | Bio Gene vs. Stelar Metals | Bio Gene vs. Dalaroo Metals |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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