Correlation Between Aneka Tambang and EP Financial
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and EP Financial 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 EP Financial 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 EP Financial Group, you can compare the effects of market volatilities on Aneka Tambang and EP Financial 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 EP Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and EP Financial.
Diversification Opportunities for Aneka Tambang and EP Financial
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aneka and EP1 is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and EP Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EP Financial Group 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 EP Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EP Financial Group has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and EP Financial go up and down completely randomly.
Pair Corralation between Aneka Tambang and EP Financial
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to generate 0.51 times more return on investment than EP Financial. However, Aneka Tambang Tbk is 1.95 times less risky than EP Financial. It trades about 0.32 of its potential returns per unit of risk. EP Financial Group is currently generating about 0.05 per unit of risk. If you would invest 86.00 in Aneka Tambang Tbk on September 25, 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 | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Aneka Tambang Tbk vs. EP Financial Group
Performance |
Timeline |
Aneka Tambang Tbk |
EP Financial Group |
Aneka Tambang and EP Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aneka Tambang and EP Financial
The main advantage of trading using opposite Aneka Tambang and EP Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, EP Financial 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 EP Financial will offset losses from the drop in EP Financial's long position.Aneka Tambang vs. Kip McGrath Education | Aneka Tambang vs. Champion Iron | Aneka Tambang vs. Actinogen Medical | Aneka Tambang vs. IDP Education |
EP Financial vs. BTC Health Limited | EP Financial vs. Oceania Healthcare | EP Financial vs. Flagship Investments | EP Financial vs. Event Hospitality and |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
Global Correlations Find global opportunities by holding instruments from different markets | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |