Correlation Between RedFlow and Aneka Tambang
Can any of the company-specific risk be diversified away by investing in both RedFlow 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 RedFlow and Aneka Tambang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RedFlow and Aneka Tambang Tbk, you can compare the effects of market volatilities on RedFlow 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 RedFlow with a short position of Aneka Tambang. Check out your portfolio center. Please also check ongoing floating volatility patterns of RedFlow and Aneka Tambang.
Diversification Opportunities for RedFlow and Aneka Tambang
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between RedFlow and Aneka is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding RedFlow 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 RedFlow 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 RedFlow 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 RedFlow i.e., RedFlow and Aneka Tambang go up and down completely randomly.
Pair Corralation between RedFlow and Aneka Tambang
Assuming the 90 days trading horizon RedFlow is expected to generate 4.84 times more return on investment than Aneka Tambang. However, RedFlow is 4.84 times more volatile than Aneka Tambang Tbk. It trades about 0.0 of its potential returns per unit of risk. Aneka Tambang Tbk is currently generating about 0.0 per unit of risk. If you would invest 19.00 in RedFlow on December 4, 2024 and sell it today you would lose (9.30) from holding RedFlow or give up 48.95% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
RedFlow vs. Aneka Tambang Tbk
Performance |
Timeline |
RedFlow |
Aneka Tambang Tbk |
RedFlow and Aneka Tambang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with RedFlow and Aneka Tambang
The main advantage of trading using opposite RedFlow and Aneka Tambang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RedFlow 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.RedFlow vs. TPG Telecom | RedFlow vs. Polymetals Resources | RedFlow vs. MotorCycle Holdings | RedFlow vs. Black Rock Mining |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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