Correlation Between Aneka Tambang and MA Financial
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang and MA 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 MA 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 MA Financial Group, you can compare the effects of market volatilities on Aneka Tambang and MA 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 MA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and MA Financial.
Diversification Opportunities for Aneka Tambang and MA Financial
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aneka and MAF is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk and MA Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MA 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 MA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MA Financial Group has no effect on the direction of Aneka Tambang i.e., Aneka Tambang and MA Financial go up and down completely randomly.
Pair Corralation between Aneka Tambang and MA Financial
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to under-perform the MA Financial. But the stock apears to be less risky and, when comparing its historical volatility, Aneka Tambang Tbk is 2.05 times less risky than MA Financial. The stock trades about -0.05 of its potential returns per unit of risk. The MA Financial Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 440.00 in MA Financial Group on September 26, 2024 and sell it today you would earn a total of 151.00 from holding MA Financial Group or generate 34.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Aneka Tambang Tbk vs. MA Financial Group
Performance |
Timeline |
Aneka Tambang Tbk |
MA Financial Group |
Aneka Tambang and MA Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aneka Tambang and MA Financial
The main advantage of trading using opposite Aneka Tambang and MA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang position performs unexpectedly, MA 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 MA Financial will offset losses from the drop in MA Financial's long position.Aneka Tambang vs. Seven West Media | Aneka Tambang vs. Homeco Daily Needs | Aneka Tambang vs. Land Homes Group | Aneka Tambang vs. oOhMedia |
MA Financial vs. Aneka Tambang Tbk | MA Financial vs. Commonwealth Bank | MA Financial vs. Commonwealth Bank of | MA Financial vs. Australia and New |
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.
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