Correlation Between Santana Minerals and Aneka Tambang
Can any of the company-specific risk be diversified away by investing in both Santana Minerals 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 Santana Minerals and Aneka Tambang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santana Minerals and Aneka Tambang Tbk, you can compare the effects of market volatilities on Santana Minerals 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 Santana Minerals with a short position of Aneka Tambang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santana Minerals and Aneka Tambang.
Diversification Opportunities for Santana Minerals and Aneka Tambang
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Santana and Aneka is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Santana Minerals 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 Santana Minerals 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 Santana Minerals 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 Santana Minerals i.e., Santana Minerals and Aneka Tambang go up and down completely randomly.
Pair Corralation between Santana Minerals and Aneka Tambang
Assuming the 90 days trading horizon Santana Minerals is expected to under-perform the Aneka Tambang. In addition to that, Santana Minerals is 2.46 times more volatile than Aneka Tambang Tbk. It trades about -0.18 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 26, 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Santana Minerals vs. Aneka Tambang Tbk
Performance |
| Timeline |
| Santana Minerals |
| Aneka Tambang Tbk |
Santana Minerals and Aneka Tambang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santana Minerals and Aneka Tambang
The main advantage of trading using opposite Santana Minerals and Aneka Tambang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santana Minerals 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.| Santana Minerals vs. Northern Star Resources | Santana Minerals vs. Evolution Mining | Santana Minerals vs. Bluescope Steel | Santana Minerals vs. Aneka Tambang Tbk |
| Aneka Tambang vs. Seven West Media | Aneka Tambang vs. Homeco Daily Needs | Aneka Tambang vs. Land Homes Group | Aneka Tambang vs. oOhMedia |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |