Correlation Between TAMBANG BATUBARA and Anritsu

Can any of the company-specific risk be diversified away by investing in both TAMBANG BATUBARA and Anritsu 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 TAMBANG BATUBARA and Anritsu into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TAMBANG BATUBARA B and Anritsu, you can compare the effects of market volatilities on TAMBANG BATUBARA and Anritsu 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 TAMBANG BATUBARA with a short position of Anritsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAMBANG BATUBARA and Anritsu.

Diversification Opportunities for TAMBANG BATUBARA and Anritsu

-0.13

Correlation Coefficient

TAMBANG BATUBARA  Anritsu

Good diversification

The 3 months correlation between TAMBANG and Anritsu is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding TAMBANG BATUBARA B and Anritsu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anritsu and TAMBANG BATUBARA 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 TAMBANG BATUBARA B are associated (or correlated) with Anritsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anritsu has no effect on the direction of TAMBANG BATUBARA i.e., TAMBANG BATUBARA and Anritsu go up and down completely randomly.

Pair Corralation between TAMBANG BATUBARA and Anritsu

Assuming the 90 days trading horizon TAMBANG BATUBARA B is expected to generate 1.17 times more return on investment than Anritsu. However, TAMBANG BATUBARA is 1.17 times more volatile than Anritsu. It trades about 0.02 of its potential returns per unit of risk. Anritsu is currently generating about -0.05 per unit of risk. If you would invest  18.00  in TAMBANG BATUBARA B on February 22, 2024 and sell it today you would earn a total of  0.00  from holding TAMBANG BATUBARA B or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

TAMBANG BATUBARA B   vs.  Anritsu

TAMBANG BATUBARA B

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TAMBANG BATUBARA B are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, TAMBANG BATUBARA is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Anritsu

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anritsu has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Anritsu is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with TAMBANG BATUBARA and Anritsu

The main advantage of trading using opposite TAMBANG BATUBARA and Anritsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAMBANG BATUBARA position performs unexpectedly, Anritsu 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 Anritsu will offset losses from the drop in Anritsu's long position.

The idea behind TAMBANG BATUBARA B and Anritsu pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.