Correlation Between Aneka Tambang and Aeon Metals
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Aeon Metals 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 Aneka Tambang and Aeon Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aneka Tambang Tbk and Aeon Metals, you can compare the effects of market volatilities on Aneka Tambang and Aeon Metals 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 Aneka Tambang with a short position of Aeon Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Aeon Metals.
Diversification Opportunities for Aneka Tambang and Aeon Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aneka and Aeon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and Aeon Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeon Metals and Aneka Tambang 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 Aneka Tambang Tbk are associated (or correlated) with Aeon Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeon Metals has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Aeon Metals go up and down completely randomly.
Pair Corralation between Aneka Tambang and Aeon Metals
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 | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Aneka Tambang Tbk vs. Aeon Metals
Performance |
Timeline |
Aneka Tambang Tbk |
Aeon Metals |
Aneka Tambang and Aeon Metals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aneka Tambang and Aeon Metals
The main advantage of trading using opposite Aneka Tambang and Aeon Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, Aeon Metals 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 Aeon Metals will offset losses from the drop in Aeon Metals' long position.Aneka Tambang vs. Kip McGrath Education | Aneka Tambang vs. Champion Iron | Aneka Tambang vs. Actinogen Medical | Aneka Tambang vs. IDP Education |
Aeon Metals vs. Northern Star Resources | Aeon Metals vs. Evolution Mining | Aeon Metals vs. Bluescope Steel | Aeon Metals vs. Aneka Tambang Tbk |
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.
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