Correlation Between COAST ENTERTAINMENT and Aneka Tambang
Can any of the company-specific risk be diversified away by investing in both COAST ENTERTAINMENT 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 COAST ENTERTAINMENT and Aneka Tambang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COAST ENTERTAINMENT HOLDINGS and Aneka Tambang Tbk, you can compare the effects of market volatilities on COAST ENTERTAINMENT 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 COAST ENTERTAINMENT with a short position of Aneka Tambang. Check out your portfolio center. Please also check ongoing floating volatility patterns of COAST ENTERTAINMENT and Aneka Tambang.
Diversification Opportunities for COAST ENTERTAINMENT and Aneka Tambang
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between COAST and Aneka is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding COAST ENTERTAINMENT HOLDINGS 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 COAST ENTERTAINMENT 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 COAST ENTERTAINMENT HOLDINGS 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 COAST ENTERTAINMENT i.e., COAST ENTERTAINMENT and Aneka Tambang go up and down completely randomly.
Pair Corralation between COAST ENTERTAINMENT and Aneka Tambang
Assuming the 90 days trading horizon COAST ENTERTAINMENT HOLDINGS is expected to generate 1.53 times more return on investment than Aneka Tambang. However, COAST ENTERTAINMENT is 1.53 times more volatile than Aneka Tambang Tbk. It trades about -0.14 of its potential returns per unit of risk. Aneka Tambang Tbk is currently generating about -0.29 per unit of risk. If you would invest 48.00 in COAST ENTERTAINMENT HOLDINGS on October 16, 2024 and sell it today you would lose (2.00) from holding COAST ENTERTAINMENT HOLDINGS or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COAST ENTERTAINMENT HOLDINGS vs. Aneka Tambang Tbk
Performance |
| Timeline |
| COAST ENTERTAINMENT |
| Aneka Tambang Tbk |
COAST ENTERTAINMENT and Aneka Tambang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COAST ENTERTAINMENT and Aneka Tambang
The main advantage of trading using opposite COAST ENTERTAINMENT and Aneka Tambang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COAST ENTERTAINMENT 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.| COAST ENTERTAINMENT vs. Everest Metals | COAST ENTERTAINMENT vs. Infomedia | COAST ENTERTAINMENT vs. Carnegie Clean Energy | COAST ENTERTAINMENT vs. oOhMedia |
| Aneka Tambang vs. Bio Gene Technology | Aneka Tambang vs. Actinogen Medical | Aneka Tambang vs. Retail Food Group | Aneka Tambang vs. Ainsworth Game Technology |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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