Correlation Between PT Indofood and Adhi Commuter
Can any of the company-specific risk be diversified away by investing in both PT Indofood and Adhi Commuter 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 PT Indofood and Adhi Commuter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Indofood Sukses and Adhi Commuter Properti, you can compare the effects of market volatilities on PT Indofood and Adhi Commuter 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 PT Indofood with a short position of Adhi Commuter. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Indofood and Adhi Commuter.
Diversification Opportunities for PT Indofood and Adhi Commuter
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between INDF and Adhi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Indofood Sukses and Adhi Commuter Properti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adhi Commuter Properti and PT Indofood 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 PT Indofood Sukses are associated (or correlated) with Adhi Commuter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adhi Commuter Properti has no effect on the direction of PT Indofood i.e., PT Indofood and Adhi Commuter go up and down completely randomly.
Pair Corralation between PT Indofood and Adhi Commuter
If you would invest 762,500 in PT Indofood Sukses on November 28, 2024 and sell it today you would earn a total of 20,000 from holding PT Indofood Sukses or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Indofood Sukses vs. Adhi Commuter Properti
Performance |
| Timeline |
| PT Indofood Sukses |
| Adhi Commuter Properti |
PT Indofood and Adhi Commuter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Indofood and Adhi Commuter
The main advantage of trading using opposite PT Indofood and Adhi Commuter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Indofood position performs unexpectedly, Adhi Commuter 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 Adhi Commuter will offset losses from the drop in Adhi Commuter's long position.| PT Indofood vs. Astra International Tbk | PT Indofood vs. Unilever Indonesia Tbk | PT Indofood vs. Telkom Indonesia Tbk | PT Indofood vs. Bank Mandiri Persero |
| Adhi Commuter vs. Adaro Minerals Indonesia | Adhi Commuter vs. Autopedia Sukses Lestari | Adhi Commuter vs. PT Bukalapak | Adhi Commuter vs. Widodo Makmur Perkasa |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |