Correlation Between Unibail Rodamco and Aneka Tambang
Can any of the company-specific risk be diversified away by investing in both Unibail Rodamco 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 Unibail Rodamco and Aneka Tambang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unibail Rodamco Westfield SE and Aneka Tambang Tbk, you can compare the effects of market volatilities on Unibail Rodamco 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 Unibail Rodamco with a short position of Aneka Tambang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unibail Rodamco and Aneka Tambang.
Diversification Opportunities for Unibail Rodamco and Aneka Tambang
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Unibail and Aneka is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Unibail Rodamco Westfield SE 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 Unibail Rodamco 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 Unibail Rodamco Westfield SE 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 Unibail Rodamco i.e., Unibail Rodamco and Aneka Tambang go up and down completely randomly.
Pair Corralation between Unibail Rodamco and Aneka Tambang
Assuming the 90 days trading horizon Unibail Rodamco Westfield SE is expected to generate 1.33 times more return on investment than Aneka Tambang. However, Unibail Rodamco is 1.33 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 0.01 per unit of risk. If you would invest 411.00 in Unibail Rodamco Westfield SE on August 28, 2024 and sell it today you would earn a total of 209.00 from holding Unibail Rodamco Westfield SE or generate 50.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Unibail Rodamco Westfield SE vs. Aneka Tambang Tbk
Performance |
| Timeline |
| Unibail Rodamco West |
| Aneka Tambang Tbk |
Unibail Rodamco and Aneka Tambang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unibail Rodamco and Aneka Tambang
The main advantage of trading using opposite Unibail Rodamco and Aneka Tambang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unibail Rodamco 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.| Unibail Rodamco vs. Black Rock Mining | Unibail Rodamco vs. Collins Foods | Unibail Rodamco vs. Home Consortium | Unibail Rodamco vs. Homeco Daily Needs |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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