Correlation Between Elixinol Wellness and Aneka Tambang
Can any of the company-specific risk be diversified away by investing in both Elixinol Wellness and Aneka Tambang 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 Elixinol Wellness and Aneka Tambang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elixinol Wellness Limited and Aneka Tambang Tbk, you can compare the effects of market volatilities on Elixinol Wellness and Aneka Tambang 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 Elixinol Wellness with a short position of Aneka Tambang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elixinol Wellness and Aneka Tambang.
Diversification Opportunities for Elixinol Wellness and Aneka Tambang
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elixinol and Aneka is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Elixinol Wellness Limited and Aneka Tambang Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aneka Tambang Tbk and Elixinol Wellness 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 Elixinol Wellness Limited are associated (or correlated) with Aneka Tambang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aneka Tambang Tbk has no effect on the direction of Elixinol Wellness i.e., Elixinol Wellness and Aneka Tambang go up and down completely randomly.
Pair Corralation between Elixinol Wellness and Aneka Tambang
Assuming the 90 days trading horizon Elixinol Wellness Limited is expected to under-perform the Aneka Tambang. In addition to that, Elixinol Wellness is 5.87 times more volatile than Aneka Tambang Tbk. It trades about -0.08 of its total potential returns per unit of risk. Aneka Tambang Tbk is currently generating about 0.36 per unit of volatility. If you would invest 90.00 in Aneka Tambang Tbk on December 5, 2024 and sell it today you would earn a total of 10.00 from holding Aneka Tambang Tbk or generate 11.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Elixinol Wellness Limited vs. Aneka Tambang Tbk
Performance |
Timeline |
Elixinol Wellness |
Aneka Tambang Tbk |
Elixinol Wellness and Aneka Tambang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Elixinol Wellness and Aneka Tambang
The main advantage of trading using opposite Elixinol Wellness and Aneka Tambang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elixinol Wellness position performs unexpectedly, Aneka Tambang 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 Aneka Tambang will offset losses from the drop in Aneka Tambang's long position.Elixinol Wellness vs. Iron Road | Elixinol Wellness vs. Asian Battery Metals | Elixinol Wellness vs. Legacy Iron Ore | Elixinol Wellness vs. Mount Gibson Iron |
Aneka Tambang vs. Talisman Mining | Aneka Tambang vs. Ainsworth Game Technology | Aneka Tambang vs. Evolution Mining | Aneka Tambang vs. Ras Technology Holdings |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |