Correlation Between Mach7 Technologies and Aneka Tambang
Can any of the company-specific risk be diversified away by investing in both Mach7 Technologies 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 Mach7 Technologies and Aneka Tambang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mach7 Technologies and Aneka Tambang Tbk, you can compare the effects of market volatilities on Mach7 Technologies 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 Mach7 Technologies with a short position of Aneka Tambang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mach7 Technologies and Aneka Tambang.
Diversification Opportunities for Mach7 Technologies and Aneka Tambang
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mach7 and Aneka is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Mach7 Technologies 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 Mach7 Technologies 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 Mach7 Technologies 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 Mach7 Technologies i.e., Mach7 Technologies and Aneka Tambang go up and down completely randomly.
Pair Corralation between Mach7 Technologies and Aneka Tambang
Assuming the 90 days trading horizon Mach7 Technologies is expected to under-perform the Aneka Tambang. In addition to that, Mach7 Technologies is 2.36 times more volatile than Aneka Tambang Tbk. It trades about -0.17 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 12, 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 Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mach7 Technologies vs. Aneka Tambang Tbk
Performance |
| Timeline |
| Mach7 Technologies |
| Aneka Tambang Tbk |
Mach7 Technologies and Aneka Tambang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mach7 Technologies and Aneka Tambang
The main advantage of trading using opposite Mach7 Technologies and Aneka Tambang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mach7 Technologies 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.| Mach7 Technologies vs. CSL | Mach7 Technologies vs. Tamawood | Mach7 Technologies vs. Cochlear | Mach7 Technologies vs. Rea Group |
| Aneka Tambang vs. TTG Fintech | Aneka Tambang vs. Talisman Mining | Aneka Tambang vs. Bailador Technology Invest | Aneka Tambang vs. RLF AgTech |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |