Correlation Between Abm Investama and Anabatic Technologies

Can any of the company-specific risk be diversified away by investing in both Abm Investama and Anabatic Technologies 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 Abm Investama and Anabatic Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Abm Investama Tbk and Anabatic Technologies Tbk, you can compare the effects of market volatilities on Abm Investama and Anabatic Technologies 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 Abm Investama with a short position of Anabatic Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abm Investama and Anabatic Technologies.

Diversification Opportunities for Abm Investama and Anabatic Technologies

-0.36

Correlation Coefficient

Abm Investama  Anabatic Technologies

Very good diversification

The 3 months correlation between Abm and Anabatic is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Abm Investama Tbk and Anabatic Technologies Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anabatic Technologies Tbk and Abm Investama 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 Abm Investama Tbk are associated (or correlated) with Anabatic Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anabatic Technologies Tbk has no effect on the direction of Abm Investama i.e., Abm Investama and Anabatic Technologies go up and down completely randomly.

Pair Corralation between Abm Investama and Anabatic Technologies

Assuming the 90 days trading horizon Abm Investama Tbk is expected to under-perform the Anabatic Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Abm Investama Tbk is 3.69 times less risky than Anabatic Technologies. The stock trades about -0.14 of its potential returns per unit of risk. The Anabatic Technologies Tbk is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  37,400  in Anabatic Technologies Tbk on December 30, 2024 and sell it today you would earn a total of  8,600  from holding Anabatic Technologies Tbk or generate 22.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Abm Investama Tbk  vs.  Anabatic Technologies Tbk

Abm Investama Tbk

Risk-Adjusted Performance

Very Weak

Over the last 90 days Abm Investama Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Anabatic Technologies Tbk

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Anabatic Technologies Tbk are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Anabatic Technologies disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Abm Investama and Anabatic Technologies

The main advantage of trading using opposite Abm Investama and Anabatic Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abm Investama position performs unexpectedly, Anabatic Technologies 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 Anabatic Technologies will offset losses from the drop in Anabatic Technologies' long position.

The idea behind Abm Investama Tbk and Anabatic Technologies Tbk pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.