Correlation Between Indofood Cbp and Map Boga
Can any of the company-specific risk be diversified away by investing in both Indofood Cbp and Map Boga 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 Indofood Cbp and Map Boga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indofood Cbp Sukses and Map Boga Adiperkasa, you can compare the effects of market volatilities on Indofood Cbp and Map Boga 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 Indofood Cbp with a short position of Map Boga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indofood Cbp and Map Boga.
Diversification Opportunities for Indofood Cbp and Map Boga
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Indofood and Map is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Indofood Cbp Sukses and Map Boga Adiperkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Map Boga Adiperkasa and Indofood Cbp 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 Indofood Cbp Sukses are associated (or correlated) with Map Boga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Map Boga Adiperkasa has no effect on the direction of Indofood Cbp i.e., Indofood Cbp and Map Boga go up and down completely randomly.
Pair Corralation between Indofood Cbp and Map Boga
Assuming the 90 days trading horizon Indofood Cbp Sukses is expected to generate 2.0 times more return on investment than Map Boga. However, Indofood Cbp is 2.0 times more volatile than Map Boga Adiperkasa. It trades about -0.1 of its potential returns per unit of risk. Map Boga Adiperkasa is currently generating about -0.22 per unit of risk. If you would invest 1,232,500 in Indofood Cbp Sukses on September 3, 2024 and sell it today you would lose (42,500) from holding Indofood Cbp Sukses or give up 3.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indofood Cbp Sukses vs. Map Boga Adiperkasa
Performance |
| Timeline |
| Indofood Cbp Sukses |
| Map Boga Adiperkasa |
Indofood Cbp and Map Boga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indofood Cbp and Map Boga
The main advantage of trading using opposite Indofood Cbp and Map Boga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indofood Cbp position performs unexpectedly, Map Boga 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 Map Boga will offset losses from the drop in Map Boga's long position.| Indofood Cbp vs. Astra International Tbk | Indofood Cbp vs. Unilever Indonesia Tbk | Indofood Cbp vs. Telkom Indonesia Tbk | Indofood Cbp vs. Bank Mandiri Persero |
| Map Boga vs. Mitra Pinasthika Mustika | Map Boga vs. Jakarta Int Hotels | Map Boga vs. Asuransi Harta Aman | Map Boga vs. Indosterling Technomedia 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |