Correlation Between Home Consortium and Aneka Tambang
Can any of the company-specific risk be diversified away by investing in both Home Consortium 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 Home Consortium and Aneka Tambang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Home Consortium and Aneka Tambang Tbk, you can compare the effects of market volatilities on Home Consortium 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 Home Consortium with a short position of Aneka Tambang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Consortium and Aneka Tambang.
Diversification Opportunities for Home Consortium and Aneka Tambang
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Home and Aneka is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Home Consortium 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 Home Consortium 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 Home Consortium 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 Home Consortium i.e., Home Consortium and Aneka Tambang go up and down completely randomly.
Pair Corralation between Home Consortium and Aneka Tambang
Assuming the 90 days trading horizon Home Consortium is expected to generate 1.08 times less return on investment than Aneka Tambang. In addition to that, Home Consortium is 1.34 times more volatile than Aneka Tambang Tbk. It trades about 0.21 of its total potential returns per unit of risk. Aneka Tambang Tbk is currently generating about 0.31 per unit of volatility. If you would invest 86.00 in Aneka Tambang Tbk on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Aneka Tambang Tbk or generate 9.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Home Consortium vs. Aneka Tambang Tbk
Performance |
| Timeline |
| Home Consortium |
| Aneka Tambang Tbk |
Home Consortium and Aneka Tambang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Consortium and Aneka Tambang
The main advantage of trading using opposite Home Consortium and Aneka Tambang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Consortium 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.| Home Consortium vs. Collins Foods | Home Consortium vs. Infomedia | Home Consortium vs. Seven West Media | Home Consortium vs. Retail Food Group |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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