Correlation Between PT Indofood and Galane Gold
Can any of the company-specific risk be diversified away by investing in both PT Indofood and Galane Gold 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 Galane Gold 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 Galane Gold, you can compare the effects of market volatilities on PT Indofood and Galane Gold 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 Galane Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Indofood and Galane Gold.
Diversification Opportunities for PT Indofood and Galane Gold
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PIFMF and Galane is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding PT Indofood Sukses and Galane Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galane Gold 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 Galane Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galane Gold has no effect on the direction of PT Indofood i.e., PT Indofood and Galane Gold go up and down completely randomly.
Pair Corralation between PT Indofood and Galane Gold
If you would invest 21.00 in Galane Gold on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Galane Gold or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
PT Indofood Sukses vs. Galane Gold
Performance |
| Timeline |
| PT Indofood Sukses |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Galane Gold |
PT Indofood and Galane Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Indofood and Galane Gold
The main advantage of trading using opposite PT Indofood and Galane Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Indofood position performs unexpectedly, Galane Gold 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 Galane Gold will offset losses from the drop in Galane Gold's long position.| PT Indofood vs. Cadence Design Systems | PT Indofood vs. Braskem SA Class | PT Indofood vs. Stepan Company | PT Indofood vs. Sphere Entertainment Co |
| Galane Gold vs. South32 Limited | Galane Gold vs. NioCorp Developments Ltd | Galane Gold vs. HUMANA INC | Galane Gold vs. SCOR PK |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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