Correlation Between Aneka Tambang and Maggie Beer

Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Maggie Beer 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 Maggie Beer 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 Maggie Beer Holdings, you can compare the effects of market volatilities on Aneka Tambang and Maggie Beer 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 Maggie Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Maggie Beer.

Diversification Opportunities for Aneka Tambang and Maggie Beer

0.33

Correlation Coefficient

Aneka Tambang  Maggie Beer

Weak diversification

The 3 months correlation between Aneka and Maggie is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and Maggie Beer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maggie Beer Holdings 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 Maggie Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maggie Beer Holdings has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Maggie Beer go up and down completely randomly.

Pair Corralation between Aneka Tambang and Maggie Beer

Assuming the 90 days trading horizon Aneka Tambang is expected to generate 24.19 times less return on investment than Maggie Beer. But when comparing it to its historical volatility, Aneka Tambang Tbk is 2.39 times less risky than Maggie Beer. It trades about 0.01 of its potential returns per unit of risk. Maggie Beer Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  5.60  in Maggie Beer Holdings on October 5, 2024 and sell it today you would earn a total of  0.20  from holding Maggie Beer Holdings or generate 3.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Aneka Tambang Tbk  vs.  Maggie Beer Holdings

Aneka Tambang Tbk

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aneka Tambang Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's primary indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Maggie Beer Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Maggie Beer Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Aneka Tambang and Maggie Beer

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

The idea behind Aneka Tambang Tbk and Maggie Beer Holdings 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.