Correlation Between Duxton Broadacre and Aneka Tambang
Can any of the company-specific risk be diversified away by investing in both Duxton Broadacre 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 Duxton Broadacre and Aneka Tambang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duxton Broadacre Farms and Aneka Tambang Tbk, you can compare the effects of market volatilities on Duxton Broadacre 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 Duxton Broadacre with a short position of Aneka Tambang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duxton Broadacre and Aneka Tambang.
Diversification Opportunities for Duxton Broadacre and Aneka Tambang
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Duxton and Aneka is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Duxton Broadacre Farms 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 Duxton Broadacre 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 Duxton Broadacre Farms 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 Duxton Broadacre i.e., Duxton Broadacre and Aneka Tambang go up and down completely randomly.
Pair Corralation between Duxton Broadacre and Aneka Tambang
Assuming the 90 days trading horizon Duxton Broadacre Farms is expected to generate 1.08 times more return on investment than Aneka Tambang. However, Duxton Broadacre is 1.08 times more volatile than Aneka Tambang Tbk. It trades about 0.03 of its potential returns per unit of risk. Aneka Tambang Tbk is currently generating about -0.1 per unit of risk. If you would invest 135.00 in Duxton Broadacre Farms on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Duxton Broadacre Farms or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duxton Broadacre Farms vs. Aneka Tambang Tbk
Performance |
| Timeline |
| Duxton Broadacre Farms |
| Aneka Tambang Tbk |
Duxton Broadacre and Aneka Tambang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duxton Broadacre and Aneka Tambang
The main advantage of trading using opposite Duxton Broadacre and Aneka Tambang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duxton Broadacre 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.| Duxton Broadacre vs. Aneka Tambang Tbk | Duxton Broadacre vs. Commonwealth Bank | Duxton Broadacre vs. Commonwealth Bank of | Duxton Broadacre vs. Australia and New |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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