Correlation Between PT Indofood and Fastly
Can any of the company-specific risk be diversified away by investing in both PT Indofood and Fastly 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 Fastly 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 Fastly Inc, you can compare the effects of market volatilities on PT Indofood and Fastly 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 Fastly. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Indofood and Fastly.
Diversification Opportunities for PT Indofood and Fastly
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ISM and Fastly is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding PT Indofood Sukses and Fastly Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fastly Inc 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 Fastly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fastly Inc has no effect on the direction of PT Indofood i.e., PT Indofood and Fastly go up and down completely randomly.
Pair Corralation between PT Indofood and Fastly
Assuming the 90 days horizon PT Indofood Sukses is expected to generate 0.94 times more return on investment than Fastly. However, PT Indofood Sukses is 1.06 times less risky than Fastly. It trades about 0.04 of its potential returns per unit of risk. Fastly Inc is currently generating about -0.04 per unit of risk. If you would invest 37.00 in PT Indofood Sukses on September 1, 2024 and sell it today you would earn a total of 7.00 from holding PT Indofood Sukses or generate 18.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
PT Indofood Sukses vs. Fastly Inc
Performance |
| Timeline |
| PT Indofood Sukses |
| Fastly Inc |
PT Indofood and Fastly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Indofood and Fastly
The main advantage of trading using opposite PT Indofood and Fastly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Indofood position performs unexpectedly, Fastly 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 Fastly will offset losses from the drop in Fastly's long position.| PT Indofood vs. Danone SA | PT Indofood vs. Superior Plus Corp | PT Indofood vs. NMI Holdings | PT Indofood vs. Origin Agritech |
| Fastly vs. APPLIED MATERIALS | Fastly vs. Mitsubishi Materials | Fastly vs. Warner Music Group | Fastly vs. Tencent Music Entertainment |
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
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |