Correlation Between Adira Dinamika and PT Indofood
Can any of the company-specific risk be diversified away by investing in both Adira Dinamika and PT Indofood 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 Adira Dinamika and PT Indofood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adira Dinamika Multi and PT Indofood Sukses, you can compare the effects of market volatilities on Adira Dinamika and PT Indofood 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 Adira Dinamika with a short position of PT Indofood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adira Dinamika and PT Indofood.
Diversification Opportunities for Adira Dinamika and PT Indofood
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Adira and INDF is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Adira Dinamika Multi and PT Indofood Sukses in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Indofood Sukses and Adira Dinamika 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 Adira Dinamika Multi are associated (or correlated) with PT Indofood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Indofood Sukses has no effect on the direction of Adira Dinamika i.e., Adira Dinamika and PT Indofood go up and down completely randomly.
Pair Corralation between Adira Dinamika and PT Indofood
Assuming the 90 days trading horizon Adira Dinamika Multi is expected to under-perform the PT Indofood. But the stock apears to be less risky and, when comparing its historical volatility, Adira Dinamika Multi is 1.91 times less risky than PT Indofood. The stock trades about -0.44 of its potential returns per unit of risk. The PT Indofood Sukses is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 750,000 in PT Indofood Sukses on August 24, 2024 and sell it today you would earn a total of 12,500 from holding PT Indofood Sukses or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adira Dinamika Multi vs. PT Indofood Sukses
Performance |
| Timeline |
| Adira Dinamika Multi |
| PT Indofood Sukses |
Adira Dinamika and PT Indofood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adira Dinamika and PT Indofood
The main advantage of trading using opposite Adira Dinamika and PT Indofood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adira Dinamika position performs unexpectedly, PT Indofood 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 PT Indofood will offset losses from the drop in PT Indofood's long position.| Adira Dinamika vs. BFI Finance Indonesia | Adira Dinamika vs. Clipan Finance Indonesia | Adira Dinamika vs. Astra Otoparts Tbk | Adira Dinamika vs. Bank Danamon Indonesia |
| PT Indofood vs. Astra International Tbk | PT Indofood vs. Unilever Indonesia Tbk | PT Indofood vs. Telkom Indonesia Tbk | PT Indofood vs. Bank Mandiri Persero |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |