Correlation Between Aneka Tambang and Amani Gold
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Amani Gold 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 Amani Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aneka Tambang Tbk and Amani Gold, you can compare the effects of market volatilities on Aneka Tambang and Amani Gold 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 Amani Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Amani Gold.
Diversification Opportunities for Aneka Tambang and Amani Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aneka and Amani is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and Amani Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amani Gold 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 Tbk are associated (or correlated) with Amani Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amani Gold has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Amani Gold go up and down completely randomly.
Pair Corralation between Aneka Tambang and Amani Gold
If you would invest 86.00 in Aneka Tambang Tbk on September 23, 2024 and sell it today you would earn a total of 8.00 from holding Aneka Tambang Tbk or generate 9.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Aneka Tambang Tbk vs. Amani Gold
Performance |
Timeline |
Aneka Tambang Tbk |
Amani Gold |
Aneka Tambang and Amani Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aneka Tambang and Amani Gold
The main advantage of trading using opposite Aneka Tambang and Amani Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, Amani Gold 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 Amani Gold will offset losses from the drop in Amani Gold's long position.Aneka Tambang vs. Northern Star Resources | Aneka Tambang vs. Evolution Mining | Aneka Tambang vs. Bluescope Steel | Aneka Tambang vs. Sandfire Resources NL |
Amani Gold vs. Northern Star Resources | Amani Gold vs. Evolution Mining | Amani Gold vs. Bluescope Steel | Amani Gold vs. Aneka Tambang Tbk |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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