Correlation Between PT Indofood and New York
Can any of the company-specific risk be diversified away by investing in both PT Indofood and New York 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 New York 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 New York Community, you can compare the effects of market volatilities on PT Indofood and New York 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 New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Indofood and New York.
Diversification Opportunities for PT Indofood and New York
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PIFMF and New is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding PT Indofood Sukses and New York Community in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Community 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 New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Community has no effect on the direction of PT Indofood i.e., PT Indofood and New York go up and down completely randomly.
Pair Corralation between PT Indofood and New York
If you would invest 39.00 in PT Indofood Sukses on August 29, 2024 and sell it today you would earn a total of 0.00 from holding PT Indofood Sukses or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
PT Indofood Sukses vs. New York Community
Performance |
| Timeline |
| PT Indofood Sukses |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| New York Community |
PT Indofood and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Indofood and New York
The main advantage of trading using opposite PT Indofood and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Indofood position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| PT Indofood vs. Ralph Lauren Corp | PT Indofood vs. Victorias Secret Co | PT Indofood vs. Bel Fuse A | PT Indofood vs. Universal Music Group |
| New York vs. Wintrust Financial Corp | New York vs. Pinnacle Financial Partners | New York vs. Associated Banc Corp | New York vs. WesBanco |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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