Correlation Between PT Indofood and Alstria Office
Can any of the company-specific risk be diversified away by investing in both PT Indofood and Alstria Office 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 Alstria Office 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 alstria office REIT AG, you can compare the effects of market volatilities on PT Indofood and Alstria Office 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 Alstria Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Indofood and Alstria Office.
Diversification Opportunities for PT Indofood and Alstria Office
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ISM and Alstria is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding PT Indofood Sukses and alstria office REIT AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on alstria office REIT 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 Alstria Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of alstria office REIT has no effect on the direction of PT Indofood i.e., PT Indofood and Alstria Office go up and down completely randomly.
Pair Corralation between PT Indofood and Alstria Office
Assuming the 90 days horizon PT Indofood Sukses is expected to under-perform the Alstria Office. In addition to that, PT Indofood is 3.16 times more volatile than alstria office REIT AG. It trades about -0.09 of its total potential returns per unit of risk. alstria office REIT AG is currently generating about -0.01 per unit of volatility. If you would invest 558.00 in alstria office REIT AG on December 8, 2024 and sell it today you would lose (2.00) from holding alstria office REIT AG or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Indofood Sukses vs. alstria office REIT AG
Performance |
| Timeline |
| PT Indofood Sukses |
| alstria office REIT |
PT Indofood and Alstria Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Indofood and Alstria Office
The main advantage of trading using opposite PT Indofood and Alstria Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Indofood position performs unexpectedly, Alstria Office 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 Alstria Office will offset losses from the drop in Alstria Office's long position.| PT Indofood vs. Jacquet Metal Service | PT Indofood vs. AFRICAN MEDIA ENT | PT Indofood vs. Nexstar Media Group | PT Indofood vs. LINMON MEDIA LTD |
| Alstria Office vs. Easy Software AG | Alstria Office vs. Vishay Intertechnology | Alstria Office vs. SPORTING | Alstria Office vs. Beta Systems Software |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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