Correlation Between Hansen Technologies and Aneka Tambang

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

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

Diversification Opportunities for Hansen Technologies and Aneka Tambang

-0.63

Correlation Coefficient

Hansen Technologies  Aneka Tambang

Excellent diversification

The 3 months correlation between Hansen and Aneka is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Hansen Technologies 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 Hansen Technologies 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 Hansen Technologies 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 Hansen Technologies i.e., Hansen Technologies and Aneka Tambang go up and down completely randomly.

Pair Corralation between Hansen Technologies and Aneka Tambang

Assuming the 90 days trading horizon Hansen Technologies is expected to under-perform the Aneka Tambang. In addition to that, Hansen Technologies is 1.46 times more volatile than Aneka Tambang Tbk. It trades about -0.21 of its total potential returns per unit of risk. Aneka Tambang Tbk is currently generating about -0.23 per unit of volatility. If you would invest  94.00  in Aneka Tambang Tbk on October 10, 2024 and sell it today you would lose (4.00) from holding Aneka Tambang Tbk or give up 4.26% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.0%
Values	Daily Returns

Hansen Technologies  vs.  Aneka Tambang Tbk

Hansen Technologies

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hansen Technologies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Hansen Technologies may actually be approaching a critical reversion point that can send shares even higher in February 2025.

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 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.

Pair Trading with Hansen Technologies and Aneka Tambang

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

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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.