Correlation Between Aneka Tambang and Kinatico
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and Kinatico 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 Kinatico 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 Kinatico, you can compare the effects of market volatilities on Aneka Tambang and Kinatico 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 Kinatico. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Kinatico.
Diversification Opportunities for Aneka Tambang and Kinatico
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aneka and Kinatico is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and Kinatico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinatico 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 Kinatico. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinatico has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and Kinatico go up and down completely randomly.
Pair Corralation between Aneka Tambang and Kinatico
Assuming the 90 days trading horizon Aneka Tambang is expected to generate 2.04 times less return on investment than Kinatico. But when comparing it to its historical volatility, Aneka Tambang Tbk is 4.15 times less risky than Kinatico. It trades about 0.3 of its potential returns per unit of risk. Kinatico is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Kinatico on September 8, 2024 and sell it today you would earn a total of 2.00 from holding Kinatico or generate 16.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Aneka Tambang Tbk vs. Kinatico
Performance |
Timeline |
Aneka Tambang Tbk |
Kinatico |
Aneka Tambang and Kinatico Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aneka Tambang and Kinatico
The main advantage of trading using opposite Aneka Tambang and Kinatico positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, Kinatico 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 Kinatico will offset losses from the drop in Kinatico's long position.Aneka Tambang vs. Argo Investments | Aneka Tambang vs. Kip McGrath Education | Aneka Tambang vs. Premier Investments | Aneka Tambang vs. BKI Investment |
Kinatico vs. Mount Gibson Iron | Kinatico vs. Retail Food Group | Kinatico vs. My Foodie Box | Kinatico vs. The Environmental Group |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |