Correlation Between Aneka Tambang and SG Fleet

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

Diversification Opportunities for Aneka Tambang and SG Fleet

AnekaSGFDiversified AwayAnekaSGFDiversified Away100%
0.28
  Correlation Coefficient

Modest diversification

The 3 months correlation between Aneka and SGF is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and SG Fleet Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SG Fleet Group 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 SG Fleet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SG Fleet Group has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and SG Fleet go up and down completely randomly.

Pair Corralation between Aneka Tambang and SG Fleet

Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to under-perform the SG Fleet. But the stock apears to be less risky and, when comparing its historical volatility, Aneka Tambang Tbk is 1.45 times less risky than SG Fleet. The stock trades about 0.0 of its potential returns per unit of risk. The SG Fleet Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  271.00  in SG Fleet Group on October 26, 2024 and sell it today you would earn a total of  73.00  from holding SG Fleet Group or generate 26.94% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Aneka Tambang Tbk  vs.  SG Fleet Group

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -50510152025
JavaScript chart by amCharts 3.21.15ATM SGF
       Timeline  
Aneka Tambang Tbk 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 comparatively stable primary indicators, Aneka Tambang is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.860.870.880.890.90.910.920.930.940.95
SG Fleet Group 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in SG Fleet Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, SG Fleet unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan2.62.72.82.933.13.23.33.4

Aneka Tambang and SG Fleet Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.19-3.91-2.64-1.36-0.08651.192.473.745.026.29 0.020.040.060.080.100.120.14
JavaScript chart by amCharts 3.21.15ATM SGF
       Returns  

Pair Trading with Aneka Tambang and SG Fleet

The main advantage of trading using opposite Aneka Tambang and SG Fleet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, SG Fleet 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 SG Fleet will offset losses from the drop in SG Fleet's long position.
The idea behind Aneka Tambang Tbk and SG Fleet Group 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

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