Correlation Between Capital Financial and Indofood Cbp
Can any of the company-specific risk be diversified away by investing in both Capital Financial and Indofood Cbp 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 Capital Financial and Indofood Cbp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Financial Indonesia and Indofood Cbp Sukses, you can compare the effects of market volatilities on Capital Financial and Indofood Cbp 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 Capital Financial with a short position of Indofood Cbp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Financial and Indofood Cbp.
Diversification Opportunities for Capital Financial and Indofood Cbp
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Capital and Indofood is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Capital Financial Indonesia and Indofood Cbp Sukses in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indofood Cbp Sukses and Capital Financial 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 Capital Financial Indonesia are associated (or correlated) with Indofood Cbp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indofood Cbp Sukses has no effect on the direction of Capital Financial i.e., Capital Financial and Indofood Cbp go up and down completely randomly.
Pair Corralation between Capital Financial and Indofood Cbp
Assuming the 90 days trading horizon Capital Financial is expected to generate 2.69 times less return on investment than Indofood Cbp. In addition to that, Capital Financial is 1.5 times more volatile than Indofood Cbp Sukses. It trades about 0.03 of its total potential returns per unit of risk. Indofood Cbp Sukses is currently generating about 0.1 per unit of volatility. If you would invest 1,012,644 in Indofood Cbp Sukses on September 2, 2024 and sell it today you would earn a total of 177,356 from holding Indofood Cbp Sukses or generate 17.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital Financial Indonesia vs. Indofood Cbp Sukses
Performance |
| Timeline |
| Capital Financial |
| Indofood Cbp Sukses |
Capital Financial and Indofood Cbp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Financial and Indofood Cbp
The main advantage of trading using opposite Capital Financial and Indofood Cbp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Financial position performs unexpectedly, Indofood Cbp 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 Cbp will offset losses from the drop in Indofood Cbp's long position.| Capital Financial vs. Ace Hardware Indonesia | Capital Financial vs. Merdeka Copper Gold | Capital Financial vs. Mitra Pinasthika Mustika | Capital Financial vs. Jakarta Int Hotels |
| Indofood Cbp vs. Unilever Indonesia Tbk | Indofood Cbp vs. PT Indofood Sukses | Indofood Cbp vs. Astra International Tbk | Indofood Cbp vs. Telkom Indonesia Tbk |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |