Correlation Between Ironbark Capital and Aneka Tambang
Can any of the company-specific risk be diversified away by investing in both Ironbark Capital 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 Ironbark Capital and Aneka Tambang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ironbark Capital and Aneka Tambang Tbk, you can compare the effects of market volatilities on Ironbark Capital 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 Ironbark Capital with a short position of Aneka Tambang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ironbark Capital and Aneka Tambang.
Diversification Opportunities for Ironbark Capital and Aneka Tambang
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ironbark and Aneka is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ironbark Capital 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 Ironbark Capital 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 Ironbark Capital 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 Ironbark Capital i.e., Ironbark Capital and Aneka Tambang go up and down completely randomly.
Pair Corralation between Ironbark Capital and Aneka Tambang
Assuming the 90 days trading horizon Ironbark Capital is expected to under-perform the Aneka Tambang. But the stock apears to be less risky and, when comparing its historical volatility, Ironbark Capital is 1.66 times less risky than Aneka Tambang. The stock trades about -0.12 of its potential returns per unit of risk. The Aneka Tambang Tbk is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 86.00 in Aneka Tambang Tbk on September 15, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ironbark Capital vs. Aneka Tambang Tbk
Performance |
| Timeline |
| Ironbark Capital |
| Aneka Tambang Tbk |
Ironbark Capital and Aneka Tambang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ironbark Capital and Aneka Tambang
The main advantage of trading using opposite Ironbark Capital and Aneka Tambang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ironbark Capital 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.| Ironbark Capital vs. Centuria Industrial Reit | Ironbark Capital vs. EROAD | Ironbark Capital vs. Aurelia Metals | Ironbark Capital vs. Dalaroo Metals |
| Aneka Tambang vs. Northern Star Resources | Aneka Tambang vs. Evolution Mining | Aneka Tambang vs. Bluescope Steel | Aneka Tambang vs. Sandfire Resources NL |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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