Correlation Between Aneka Tambang and Samindo Resources
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Samindo Resources 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 Aneka Tambang and Samindo Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aneka Tambang Persero and Samindo Resources Tbk, you can compare the effects of market volatilities on Aneka Tambang and Samindo Resources 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 Aneka Tambang with a short position of Samindo Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Samindo Resources.
Diversification Opportunities for Aneka Tambang and Samindo Resources
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aneka and Samindo is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Persero and Samindo Resources Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samindo Resources Tbk and Aneka Tambang 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 Aneka Tambang Persero are associated (or correlated) with Samindo Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samindo Resources Tbk has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Samindo Resources go up and down completely randomly.
Pair Corralation between Aneka Tambang and Samindo Resources
Assuming the 90 days trading horizon Aneka Tambang Persero is expected to under-perform the Samindo Resources. But the stock apears to be less risky and, when comparing its historical volatility, Aneka Tambang Persero is 1.04 times less risky than Samindo Resources. The stock trades about 0.0 of its potential returns per unit of risk. The Samindo Resources Tbk is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 130,500 in Samindo Resources Tbk on September 27, 2024 and sell it today you would earn a total of 42,500 from holding Samindo Resources Tbk or generate 32.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Aneka Tambang Persero vs. Samindo Resources Tbk
Performance |
Timeline |
Aneka Tambang Persero |
Samindo Resources Tbk |
Aneka Tambang and Samindo Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aneka Tambang and Samindo Resources
The main advantage of trading using opposite Aneka Tambang and Samindo Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, Samindo Resources 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 Samindo Resources will offset losses from the drop in Samindo Resources' long position.Aneka Tambang vs. Perusahaan Gas Negara | Aneka Tambang vs. Vale Indonesia Tbk | Aneka Tambang vs. Bukit Asam Tbk | Aneka Tambang vs. Telkom Indonesia Tbk |
Samindo Resources vs. Perusahaan Gas Negara | Samindo Resources vs. Indo Tambangraya Megah | Samindo Resources vs. Aneka Tambang Persero |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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