Correlation Between Saferoads Holdings and Aneka Tambang
Can any of the company-specific risk be diversified away by investing in both Saferoads Holdings 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 Saferoads Holdings and Aneka Tambang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saferoads Holdings and Aneka Tambang Tbk, you can compare the effects of market volatilities on Saferoads Holdings 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 Saferoads Holdings with a short position of Aneka Tambang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saferoads Holdings and Aneka Tambang.
Diversification Opportunities for Saferoads Holdings and Aneka Tambang
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Saferoads and Aneka is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Saferoads Holdings 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 Saferoads Holdings 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 Saferoads Holdings 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 Saferoads Holdings i.e., Saferoads Holdings and Aneka Tambang go up and down completely randomly.
Pair Corralation between Saferoads Holdings and Aneka Tambang
Assuming the 90 days trading horizon Saferoads Holdings is expected to generate 53.44 times more return on investment than Aneka Tambang. However, Saferoads Holdings is 53.44 times more volatile than Aneka Tambang Tbk. It trades about 0.12 of its potential returns per unit of risk. Aneka Tambang Tbk is currently generating about 0.2 per unit of risk. If you would invest 4.10 in Saferoads Holdings on December 30, 2024 and sell it today you would earn a total of 13.90 from holding Saferoads Holdings or generate 339.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Saferoads Holdings vs. Aneka Tambang Tbk
Performance |
Timeline |
Saferoads Holdings |
Aneka Tambang Tbk |
Saferoads Holdings and Aneka Tambang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Saferoads Holdings and Aneka Tambang
The main advantage of trading using opposite Saferoads Holdings and Aneka Tambang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saferoads Holdings 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.Saferoads Holdings vs. Carlton Investments | Saferoads Holdings vs. Clime Investment Management | Saferoads Holdings vs. A1 Investments Resources | Saferoads Holdings vs. BKI Investment |
Aneka Tambang vs. Australian United Investment | Aneka Tambang vs. Sports Entertainment Group | Aneka Tambang vs. Sandon Capital Investments | Aneka Tambang vs. Argo Investments |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |