Correlation Between Anabatic Technologies and Cipta Selera

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

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

Diversification Opportunities for Anabatic Technologies and Cipta Selera

0.26

Correlation Coefficient

Anabatic Technologies  Cipta Selera

Modest diversification

The 3 months correlation between Anabatic and Cipta is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Anabatic Technologies Tbk and Cipta Selera Murni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipta Selera Murni and Anabatic Technologies 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 Anabatic Technologies Tbk are associated (or correlated) with Cipta Selera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cipta Selera Murni has no effect on the direction of Anabatic Technologies i.e., Anabatic Technologies and Cipta Selera go up and down completely randomly.

Pair Corralation between Anabatic Technologies and Cipta Selera

Assuming the 90 days trading horizon Anabatic Technologies Tbk is expected to generate 0.77 times more return on investment than Cipta Selera. However, Anabatic Technologies Tbk is 1.3 times less risky than Cipta Selera. It trades about 0.22 of its potential returns per unit of risk. Cipta Selera Murni is currently generating about 0.15 per unit of risk. If you would invest  37,600  in Anabatic Technologies Tbk on October 26, 2024 and sell it today you would earn a total of  3,000  from holding Anabatic Technologies Tbk or generate 7.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	94.74%
Values	Daily Returns

Anabatic Technologies Tbk  vs.  Cipta Selera Murni

Anabatic Technologies Tbk

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Anabatic Technologies Tbk are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Anabatic Technologies is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Cipta Selera Murni

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cipta Selera Murni are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Cipta Selera disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Anabatic Technologies and Cipta Selera

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

The idea behind Anabatic Technologies Tbk and Cipta Selera Murni 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.