Correlation Between Galena Mining and Aneka Tambang

Can any of the company-specific risk be diversified away by investing in both Galena Mining 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 Galena Mining and Aneka Tambang into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Galena Mining and Aneka Tambang Tbk, you can compare the effects of market volatilities on Galena Mining 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 Galena Mining with a short position of Aneka Tambang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galena Mining and Aneka Tambang.

Diversification Opportunities for Galena Mining and Aneka Tambang

0.0

Correlation Coefficient

Galena Mining  Aneka Tambang

Pay attention - limited upside

The 3 months correlation between Galena and Aneka is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Galena Mining 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 Galena Mining 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 Galena Mining 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 Galena Mining i.e., Galena Mining and Aneka Tambang go up and down completely randomly.

Pair Corralation between Galena Mining and Aneka Tambang

If you would invest  5.90  in Galena Mining on October 7, 2024 and sell it today you would earn a total of  0.00  from holding Galena Mining or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Galena Mining  vs.  Aneka Tambang Tbk

Galena Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Galena Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Galena Mining is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

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.

Pair Trading with Galena Mining and Aneka Tambang

The main advantage of trading using opposite Galena Mining and Aneka Tambang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galena Mining 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.

The idea behind Galena Mining and Aneka Tambang Tbk 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.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.