Correlation Between WIMFARM SA and INDOFOOD AGRI
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and INDOFOOD AGRI 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 WIMFARM SA and INDOFOOD AGRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WIMFARM SA EO and INDOFOOD AGRI RES, you can compare the effects of market volatilities on WIMFARM SA and INDOFOOD AGRI 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 WIMFARM SA with a short position of INDOFOOD AGRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and INDOFOOD AGRI.
Diversification Opportunities for WIMFARM SA and INDOFOOD AGRI
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WIMFARM and INDOFOOD is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and INDOFOOD AGRI RES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDOFOOD AGRI RES and WIMFARM SA 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 WIMFARM SA EO are associated (or correlated) with INDOFOOD AGRI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INDOFOOD AGRI RES has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and INDOFOOD AGRI go up and down completely randomly.
Pair Corralation between WIMFARM SA and INDOFOOD AGRI
If you would invest 316.00 in WIMFARM SA EO on September 21, 2024 and sell it today you would earn a total of 25.00 from holding WIMFARM SA EO or generate 7.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIMFARM SA EO vs. INDOFOOD AGRI RES
Performance |
| Timeline |
| WIMFARM SA EO |
| INDOFOOD AGRI RES |
WIMFARM SA and INDOFOOD AGRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and INDOFOOD AGRI
The main advantage of trading using opposite WIMFARM SA and INDOFOOD AGRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, INDOFOOD AGRI 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 INDOFOOD AGRI will offset losses from the drop in INDOFOOD AGRI's long position.| WIMFARM SA vs. AB Volvo | WIMFARM SA vs. Daimler Truck Holding | WIMFARM SA vs. Superior Plus Corp | WIMFARM SA vs. SIVERS SEMICONDUCTORS AB |
| INDOFOOD AGRI vs. ePlay Digital | INDOFOOD AGRI vs. WIMFARM SA EO | INDOFOOD AGRI vs. PLAYMATES TOYS | INDOFOOD AGRI vs. Sumitomo Mitsui Construction |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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