Correlation Between HF SINCLAIR and INDOFOOD AGRI
Can any of the company-specific risk be diversified away by investing in both HF SINCLAIR 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 HF SINCLAIR and INDOFOOD AGRI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HF SINCLAIR P and INDOFOOD AGRI RES, you can compare the effects of market volatilities on HF SINCLAIR 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 HF SINCLAIR with a short position of INDOFOOD AGRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF SINCLAIR and INDOFOOD AGRI.
Diversification Opportunities for HF SINCLAIR and INDOFOOD AGRI
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between HL80 and INDOFOOD is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding HF SINCLAIR P 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 HF SINCLAIR 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 HF SINCLAIR P 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 HF SINCLAIR i.e., HF SINCLAIR and INDOFOOD AGRI go up and down completely randomly.
Pair Corralation between HF SINCLAIR and INDOFOOD AGRI
Assuming the 90 days trading horizon HF SINCLAIR P is expected to under-perform the INDOFOOD AGRI. But the stock apears to be less risky and, when comparing its historical volatility, HF SINCLAIR P is 1.03 times less risky than INDOFOOD AGRI. The stock trades about -0.01 of its potential returns per unit of risk. The INDOFOOD AGRI RES is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 18.00 in INDOFOOD AGRI RES on September 14, 2024 and sell it today you would earn a total of 4.00 from holding INDOFOOD AGRI RES or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF SINCLAIR P vs. INDOFOOD AGRI RES
Performance |
| Timeline |
| HF SINCLAIR P |
| INDOFOOD AGRI RES |
HF SINCLAIR and INDOFOOD AGRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF SINCLAIR and INDOFOOD AGRI
The main advantage of trading using opposite HF SINCLAIR and INDOFOOD AGRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF SINCLAIR 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.| HF SINCLAIR vs. INDOFOOD AGRI RES | HF SINCLAIR vs. Gamma Communications plc | HF SINCLAIR vs. SENECA FOODS A | HF SINCLAIR vs. ASSOC BR FOODS |
| INDOFOOD AGRI vs. REGAL ASIAN INVESTMENTS | INDOFOOD AGRI vs. Chuangs China Investments | INDOFOOD AGRI vs. ECHO INVESTMENT ZY | INDOFOOD AGRI vs. Apollo Investment Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| CEOs Directory Screen CEOs from public companies around the world |