Correlation Between Anabatic Technologies and PT Indofood
Can any of the company-specific risk be diversified away by investing in both Anabatic Technologies 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 Anabatic Technologies and PT Indofood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anabatic Technologies Tbk and PT Indofood Sukses, you can compare the effects of market volatilities on Anabatic Technologies 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 Anabatic Technologies with a short position of PT Indofood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anabatic Technologies and PT Indofood.
Diversification Opportunities for Anabatic Technologies and PT Indofood
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Anabatic and INDF is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Anabatic Technologies Tbk 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 Anabatic Technologies 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 Anabatic Technologies Tbk 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 Anabatic Technologies i.e., Anabatic Technologies and PT Indofood go up and down completely randomly.
Pair Corralation between Anabatic Technologies and PT Indofood
Assuming the 90 days trading horizon Anabatic Technologies Tbk is expected to generate 5.08 times more return on investment than PT Indofood. However, Anabatic Technologies is 5.08 times more volatile than PT Indofood Sukses. It trades about 0.3 of its potential returns per unit of risk. PT Indofood Sukses is currently generating about 0.09 per unit of risk. If you would invest 40,400 in Anabatic Technologies Tbk on November 28, 2024 and sell it today you would earn a total of 22,600 from holding Anabatic Technologies Tbk or generate 55.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anabatic Technologies Tbk vs. PT Indofood Sukses
Performance |
| Timeline |
| Anabatic Technologies Tbk |
| PT Indofood Sukses |
Anabatic Technologies and PT Indofood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anabatic Technologies and PT Indofood
The main advantage of trading using opposite Anabatic Technologies and PT Indofood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anabatic Technologies 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.| Anabatic Technologies vs. Multipolar Technology Tbk | Anabatic Technologies vs. Abm Investama Tbk | Anabatic Technologies vs. Arita Prima Indonesia | Anabatic Technologies vs. Bali Towerindo Sentra |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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