Correlation Between Sandfire Resources and Aneka Tambang
Can any of the company-specific risk be diversified away by investing in both Sandfire Resources 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 Sandfire Resources and Aneka Tambang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sandfire Resources NL and Aneka Tambang Tbk, you can compare the effects of market volatilities on Sandfire Resources 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 Sandfire Resources with a short position of Aneka Tambang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandfire Resources and Aneka Tambang.
Diversification Opportunities for Sandfire Resources and Aneka Tambang
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sandfire and Aneka is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sandfire Resources NL 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 Sandfire Resources 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 Sandfire Resources NL 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 Sandfire Resources i.e., Sandfire Resources and Aneka Tambang go up and down completely randomly.
Pair Corralation between Sandfire Resources and Aneka Tambang
Assuming the 90 days trading horizon Sandfire Resources NL is expected to generate 1.99 times more return on investment than Aneka Tambang. However, Sandfire Resources is 1.99 times more volatile than Aneka Tambang Tbk. It trades about 0.06 of its potential returns per unit of risk. Aneka Tambang Tbk is currently generating about -0.04 per unit of risk. If you would invest 670.00 in Sandfire Resources NL on August 29, 2024 and sell it today you would earn a total of 347.00 from holding Sandfire Resources NL or generate 51.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sandfire Resources NL vs. Aneka Tambang Tbk
Performance |
| Timeline |
| Sandfire Resources |
| Aneka Tambang Tbk |
Sandfire Resources and Aneka Tambang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sandfire Resources and Aneka Tambang
The main advantage of trading using opposite Sandfire Resources and Aneka Tambang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandfire Resources 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.| Sandfire Resources vs. Dexus Convenience Retail | Sandfire Resources vs. Collins Foods | Sandfire Resources vs. ABACUS STORAGE KING | Sandfire Resources vs. Genetic Technologies |
| Aneka Tambang vs. Hawsons Iron | Aneka Tambang vs. Carlton Investments | Aneka Tambang vs. MFF Capital Investments | Aneka Tambang vs. Mount Gibson Iron |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |