Correlation Between Lautan Luas and Anabatic Technologies
Can any of the company-specific risk be diversified away by investing in both Lautan Luas and Anabatic Technologies 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 Lautan Luas and Anabatic Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lautan Luas Tbk and Anabatic Technologies Tbk, you can compare the effects of market volatilities on Lautan Luas and Anabatic Technologies 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 Lautan Luas with a short position of Anabatic Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lautan Luas and Anabatic Technologies.
Diversification Opportunities for Lautan Luas and Anabatic Technologies
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lautan and Anabatic is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Lautan Luas Tbk and Anabatic Technologies Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anabatic Technologies Tbk and Lautan Luas 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 Lautan Luas Tbk are associated (or correlated) with Anabatic Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anabatic Technologies Tbk has no effect on the direction of Lautan Luas i.e., Lautan Luas and Anabatic Technologies go up and down completely randomly.
Pair Corralation between Lautan Luas and Anabatic Technologies
Assuming the 90 days trading horizon Lautan Luas is expected to generate 6.44 times less return on investment than Anabatic Technologies. But when comparing it to its historical volatility, Lautan Luas Tbk is 1.59 times less risky than Anabatic Technologies. It trades about 0.0 of its potential returns per unit of risk. Anabatic Technologies Tbk is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 35,200 in Anabatic Technologies Tbk on September 14, 2024 and sell it today you would earn a total of 1,400 from holding Anabatic Technologies Tbk or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lautan Luas Tbk vs. Anabatic Technologies Tbk
Performance |
| Timeline |
| Lautan Luas Tbk |
| Anabatic Technologies Tbk |
Lautan Luas and Anabatic Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lautan Luas and Anabatic Technologies
The main advantage of trading using opposite Lautan Luas and Anabatic Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lautan Luas position performs unexpectedly, Anabatic Technologies 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 Anabatic Technologies will offset losses from the drop in Anabatic Technologies' long position.| Lautan Luas vs. Kedaung Indah Can | Lautan Luas vs. Kabelindo Murni Tbk | Lautan Luas vs. Champion Pacific Indonesia | Lautan Luas vs. Bhuwanatala Indah Permai |
| Anabatic Technologies vs. Multipolar Tbk | Anabatic Technologies vs. Astra Graphia Tbk | Anabatic Technologies vs. Ramayana Lestari Sentosa | Anabatic Technologies vs. Lautan Luas Tbk |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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