Correlation Between Spacetalk and Aneka Tambang
Can any of the company-specific risk be diversified away by investing in both Spacetalk 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 Spacetalk and Aneka Tambang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spacetalk and Aneka Tambang Tbk, you can compare the effects of market volatilities on Spacetalk 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 Spacetalk with a short position of Aneka Tambang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spacetalk and Aneka Tambang.
Diversification Opportunities for Spacetalk and Aneka Tambang
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spacetalk and Aneka is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Spacetalk 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 Spacetalk 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 Spacetalk 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 Spacetalk i.e., Spacetalk and Aneka Tambang go up and down completely randomly.
Pair Corralation between Spacetalk and Aneka Tambang
Assuming the 90 days trading horizon Spacetalk is expected to generate 1.31 times less return on investment than Aneka Tambang. In addition to that, Spacetalk is 6.11 times more volatile than Aneka Tambang Tbk. It trades about 0.04 of its total potential returns per unit of risk. Aneka Tambang Tbk is currently generating about 0.32 per unit of volatility. If you would invest 86.00 in Aneka Tambang Tbk on September 25, 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 | 100.0% |
| Values | Daily Returns |
Spacetalk vs. Aneka Tambang Tbk
Performance |
| Timeline |
| Spacetalk |
| Aneka Tambang Tbk |
Spacetalk and Aneka Tambang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spacetalk and Aneka Tambang
The main advantage of trading using opposite Spacetalk and Aneka Tambang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spacetalk 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.| Spacetalk vs. Mirrabooka Investments | Spacetalk vs. MFF Capital Investments | Spacetalk vs. Australian Unity Office | Spacetalk vs. Argo Investments |
| Aneka Tambang vs. Kip McGrath Education | Aneka Tambang vs. Champion Iron | Aneka Tambang vs. Actinogen Medical | Aneka Tambang vs. IDP Education |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |