Correlation Between Indofood Cbp and Sri Rejeki
Can any of the company-specific risk be diversified away by investing in both Indofood Cbp and Sri Rejeki 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 Sri Rejeki 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 Sri Rejeki IsmanPT, you can compare the effects of market volatilities on Indofood Cbp and Sri Rejeki 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 Sri Rejeki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indofood Cbp and Sri Rejeki.
Diversification Opportunities for Indofood Cbp and Sri Rejeki
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indofood and Sri is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indofood Cbp Sukses and Sri Rejeki IsmanPT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sri Rejeki IsmanPT 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 Sri Rejeki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sri Rejeki IsmanPT has no effect on the direction of Indofood Cbp i.e., Indofood Cbp and Sri Rejeki go up and down completely randomly.
Pair Corralation between Indofood Cbp and Sri Rejeki
If you would invest 1,032,260 in Indofood Cbp Sukses on September 4, 2024 and sell it today you would earn a total of 147,740 from holding Indofood Cbp Sukses or generate 14.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.57% |
| Values | Daily Returns |
Indofood Cbp Sukses vs. Sri Rejeki IsmanPT
Performance |
| Timeline |
| Indofood Cbp Sukses |
| Sri Rejeki IsmanPT |
Indofood Cbp and Sri Rejeki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indofood Cbp and Sri Rejeki
The main advantage of trading using opposite Indofood Cbp and Sri Rejeki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indofood Cbp position performs unexpectedly, Sri Rejeki 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 Sri Rejeki will offset losses from the drop in Sri Rejeki's long position.| Indofood Cbp vs. Unilever Indonesia Tbk | Indofood Cbp vs. PT Indofood Sukses | Indofood Cbp vs. Astra International Tbk | Indofood Cbp vs. Telkom Indonesia Tbk |
| Sri Rejeki vs. Fast Food Indonesia | Sri Rejeki vs. Indointernet Tbk PT | Sri Rejeki vs. Enseval Putra Megatrading | Sri Rejeki vs. PT Homeco Victoria |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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