Correlation Between Alstria Office and INDOFOOD AGRI
Can any of the company-specific risk be diversified away by investing in both Alstria Office 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 Alstria Office and INDOFOOD AGRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between alstria office REIT AG and INDOFOOD AGRI RES, you can compare the effects of market volatilities on Alstria Office 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 Alstria Office with a short position of INDOFOOD AGRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alstria Office and INDOFOOD AGRI.
Diversification Opportunities for Alstria Office and INDOFOOD AGRI
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alstria and INDOFOOD is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG 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 Alstria Office 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 alstria office REIT AG 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 Alstria Office i.e., Alstria Office and INDOFOOD AGRI go up and down completely randomly.
Pair Corralation between Alstria Office and INDOFOOD AGRI
If you would invest 676.00 in alstria office REIT AG on September 20, 2024 and sell it today you would earn a total of 90.00 from holding alstria office REIT AG or generate 13.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
alstria office REIT AG vs. INDOFOOD AGRI RES
Performance |
| Timeline |
| alstria office REIT |
| INDOFOOD AGRI RES |
Alstria Office and INDOFOOD AGRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alstria Office and INDOFOOD AGRI
The main advantage of trading using opposite Alstria Office and INDOFOOD AGRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alstria Office 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.| Alstria Office vs. Ribbon Communications | Alstria Office vs. Live Nation Entertainment | Alstria Office vs. Cogent Communications Holdings | Alstria Office vs. Iridium Communications |
| 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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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