Correlation Between Indofood Cbp and Tifico Fiber
Can any of the company-specific risk be diversified away by investing in both Indofood Cbp and Tifico Fiber 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 Tifico Fiber 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 Tifico Fiber Indonesia, you can compare the effects of market volatilities on Indofood Cbp and Tifico Fiber 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 Tifico Fiber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indofood Cbp and Tifico Fiber.
Diversification Opportunities for Indofood Cbp and Tifico Fiber
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Indofood and Tifico is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Indofood Cbp Sukses and Tifico Fiber Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tifico Fiber Indonesia 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 Tifico Fiber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tifico Fiber Indonesia has no effect on the direction of Indofood Cbp i.e., Indofood Cbp and Tifico Fiber go up and down completely randomly.
Pair Corralation between Indofood Cbp and Tifico Fiber
If you would invest 49,200 in Tifico Fiber Indonesia on December 1, 2024 and sell it today you would earn a total of 0.00 from holding Tifico Fiber Indonesia or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indofood Cbp Sukses vs. Tifico Fiber Indonesia
Performance |
| Timeline |
| Indofood Cbp Sukses |
| Tifico Fiber Indonesia |
Indofood Cbp and Tifico Fiber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indofood Cbp and Tifico Fiber
The main advantage of trading using opposite Indofood Cbp and Tifico Fiber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indofood Cbp position performs unexpectedly, Tifico Fiber 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 Tifico Fiber will offset losses from the drop in Tifico Fiber'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 |
| Tifico Fiber vs. Sunson Textile Manufacturer | Tifico Fiber vs. Voksel Electric Tbk | Tifico Fiber vs. Ricky Putra Globalindo | Tifico Fiber vs. Supreme Cable Manufacturing |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |