Correlation Between PT Indofood and Eiffage SA
Can any of the company-specific risk be diversified away by investing in both PT Indofood and Eiffage SA 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 Eiffage SA 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 Eiffage SA, you can compare the effects of market volatilities on PT Indofood and Eiffage SA 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 Eiffage SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Indofood and Eiffage SA.
Diversification Opportunities for PT Indofood and Eiffage SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PIFMF and Eiffage is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Indofood Sukses and Eiffage SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eiffage SA 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 Eiffage SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eiffage SA has no effect on the direction of PT Indofood i.e., PT Indofood and Eiffage SA go up and down completely randomly.
Pair Corralation between PT Indofood and Eiffage SA
If you would invest (100.00) in Eiffage SA on December 2, 2024 and sell it today you would earn a total of 100.00 from holding Eiffage SA or generate -100.0% 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. Eiffage SA
Performance |
| Timeline |
| PT Indofood Sukses |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Eiffage SA |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
PT Indofood and Eiffage SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Indofood and Eiffage SA
The main advantage of trading using opposite PT Indofood and Eiffage SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Indofood position performs unexpectedly, Eiffage SA 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 Eiffage SA will offset losses from the drop in Eiffage SA's long position.| PT Indofood vs. Corporacion America Airports | PT Indofood vs. Finnair Oyj | PT Indofood vs. Grupo Aeroportuario del | PT Indofood vs. Simon Property Group |
| Eiffage SA vs. Concrete Pumping Holdings | Eiffage SA vs. Orion Group Holdings | Eiffage SA vs. Matrix Service Co | Eiffage SA vs. Limbach Holdings |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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