Correlation Between Nanotech Indonesia and Ace Oldfields
Can any of the company-specific risk be diversified away by investing in both Nanotech Indonesia and Ace Oldfields 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 Nanotech Indonesia and Ace Oldfields into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nanotech Indonesia Global and Ace Oldfields PT, you can compare the effects of market volatilities on Nanotech Indonesia and Ace Oldfields 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 Nanotech Indonesia with a short position of Ace Oldfields. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanotech Indonesia and Ace Oldfields.
Diversification Opportunities for Nanotech Indonesia and Ace Oldfields
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nanotech and Ace is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Nanotech Indonesia Global and Ace Oldfields PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ace Oldfields PT and Nanotech Indonesia 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 Nanotech Indonesia Global are associated (or correlated) with Ace Oldfields. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ace Oldfields PT has no effect on the direction of Nanotech Indonesia i.e., Nanotech Indonesia and Ace Oldfields go up and down completely randomly.
Pair Corralation between Nanotech Indonesia and Ace Oldfields
Assuming the 90 days trading horizon Nanotech Indonesia Global is expected to generate 2.97 times more return on investment than Ace Oldfields. However, Nanotech Indonesia is 2.97 times more volatile than Ace Oldfields PT. It trades about 0.1 of its potential returns per unit of risk. Ace Oldfields PT is currently generating about 0.01 per unit of risk. If you would invest 1,400 in Nanotech Indonesia Global on September 1, 2024 and sell it today you would earn a total of 700.00 from holding Nanotech Indonesia Global or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanotech Indonesia Global vs. Ace Oldfields PT
Performance |
| Timeline |
| Nanotech Indonesia Global |
| Ace Oldfields PT |
Nanotech Indonesia and Ace Oldfields Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanotech Indonesia and Ace Oldfields
The main advantage of trading using opposite Nanotech Indonesia and Ace Oldfields positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanotech Indonesia position performs unexpectedly, Ace Oldfields 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 Ace Oldfields will offset losses from the drop in Ace Oldfields' long position.| Nanotech Indonesia vs. Sumber Tani Agung | Nanotech Indonesia vs. Wahana Inti MakmurTbk | Nanotech Indonesia vs. Integra Indocabinet Tbk | Nanotech Indonesia vs. Multistrada Arah Sarana |
| Ace Oldfields vs. Ladangbaja Murni PT | Ace Oldfields vs. PT Hasnur Internasional | Ace Oldfields vs. Geoprima Solusi Tbk | Ace Oldfields vs. Prima Andalan Mandiri |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |