Correlation Between Indo Tambangraya and AIM Energy
Can any of the company-specific risk be diversified away by investing in both Indo Tambangraya and AIM Energy 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 Indo Tambangraya and AIM Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indo Tambangraya Megah and AIM Energy, you can compare the effects of market volatilities on Indo Tambangraya and AIM Energy 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 Indo Tambangraya with a short position of AIM Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indo Tambangraya and AIM Energy.
Diversification Opportunities for Indo Tambangraya and AIM Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indo and AIM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indo Tambangraya Megah and AIM Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM Energy and Indo Tambangraya 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 Indo Tambangraya Megah are associated (or correlated) with AIM Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIM Energy has no effect on the direction of Indo Tambangraya i.e., Indo Tambangraya and AIM Energy go up and down completely randomly.
Pair Corralation between Indo Tambangraya and AIM Energy
If you would invest 390.00 in Indo Tambangraya Megah on September 12, 2024 and sell it today you would lose (89.00) from holding Indo Tambangraya Megah or give up 22.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indo Tambangraya Megah vs. AIM Energy
Performance |
| Timeline |
| Indo Tambangraya Megah |
| AIM Energy |
Indo Tambangraya and AIM Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indo Tambangraya and AIM Energy
The main advantage of trading using opposite Indo Tambangraya and AIM Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indo Tambangraya position performs unexpectedly, AIM Energy 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 AIM Energy will offset losses from the drop in AIM Energy's long position.| Indo Tambangraya vs. Bukit Asam Tbk | Indo Tambangraya vs. Adaro Energy Tbk | Indo Tambangraya vs. Geo Energy Resources | Indo Tambangraya vs. Yanzhou Coal Mining |
| AIM Energy vs. Adaro Energy Tbk | AIM Energy vs. Alliance Resource Partners | AIM Energy vs. Indo Tambangraya Megah | AIM Energy vs. Yanzhou Coal Mining |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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