Correlation Between SG Fleet and Aneka Tambang

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Can any of the company-specific risk be diversified away by investing in both SG Fleet 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 SG Fleet and Aneka Tambang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SG Fleet Group and Aneka Tambang Tbk, you can compare the effects of market volatilities on SG Fleet 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 SG Fleet with a short position of Aneka Tambang. Check out your portfolio center. Please also check ongoing floating volatility patterns of SG Fleet and Aneka Tambang.

Diversification Opportunities for SG Fleet and Aneka Tambang

SGFAnekaDiversified AwaySGFAnekaDiversified Away100%
0.28
  Correlation Coefficient

Modest diversification

The 3 months correlation between SGF and Aneka is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding SG Fleet Group 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 SG Fleet 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 SG Fleet Group 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 SG Fleet i.e., SG Fleet and Aneka Tambang go up and down completely randomly.

Pair Corralation between SG Fleet and Aneka Tambang

Assuming the 90 days trading horizon SG Fleet Group is expected to generate 1.45 times more return on investment than Aneka Tambang. However, SG Fleet is 1.45 times more volatile than Aneka Tambang Tbk. It trades about 0.17 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  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

SG Fleet Group  vs.  Aneka Tambang Tbk

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -50510152025
JavaScript chart by amCharts 3.21.15SGF ATM
       Timeline  
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 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 and Aneka Tambang Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-7.21-5.44-3.67-1.89-0.121.83.725.657.589.5 0.020.040.060.080.100.120.14
JavaScript chart by amCharts 3.21.15SGF ATM
       Returns  

Pair Trading with SG Fleet and Aneka Tambang

The main advantage of trading using opposite SG Fleet and Aneka Tambang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SG Fleet 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 SG Fleet Group 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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