Correlation Between DY6 Metals and Aneka Tambang
Can any of the company-specific risk be diversified away by investing in both DY6 Metals 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 DY6 Metals and Aneka Tambang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DY6 Metals and Aneka Tambang Tbk, you can compare the effects of market volatilities on DY6 Metals 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 DY6 Metals with a short position of Aneka Tambang. Check out your portfolio center. Please also check ongoing floating volatility patterns of DY6 Metals and Aneka Tambang.
Diversification Opportunities for DY6 Metals and Aneka Tambang
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between DY6 and Aneka is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding DY6 Metals 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 DY6 Metals 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 DY6 Metals 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 DY6 Metals i.e., DY6 Metals and Aneka Tambang go up and down completely randomly.
Pair Corralation between DY6 Metals and Aneka Tambang
Assuming the 90 days trading horizon DY6 Metals is expected to generate 16.79 times more return on investment than Aneka Tambang. However, DY6 Metals is 16.79 times more volatile than Aneka Tambang Tbk. It trades about 0.01 of its potential returns per unit of risk. Aneka Tambang Tbk is currently generating about -0.02 per unit of risk. If you would invest 24.00 in DY6 Metals on October 16, 2024 and sell it today you would lose (19.60) from holding DY6 Metals or give up 81.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 82.18% |
| Values | Daily Returns |
DY6 Metals vs. Aneka Tambang Tbk
Performance |
| Timeline |
| DY6 Metals |
| Aneka Tambang Tbk |
DY6 Metals and Aneka Tambang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DY6 Metals and Aneka Tambang
The main advantage of trading using opposite DY6 Metals and Aneka Tambang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DY6 Metals 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.| DY6 Metals vs. Pinnacle Investment Management | DY6 Metals vs. BKI Investment | DY6 Metals vs. Perseus Mining | DY6 Metals vs. IDP Education |
| Aneka Tambang vs. DY6 Metals | Aneka Tambang vs. Ambertech | Aneka Tambang vs. Thorney Technologies | Aneka Tambang vs. Stelar Metals |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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