Correlation Between PT Indofood and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both PT Indofood and Uber Technologies 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 Uber Technologies 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 Uber Technologies, you can compare the effects of market volatilities on PT Indofood and Uber Technologies 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 Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Indofood and Uber Technologies.
Diversification Opportunities for PT Indofood and Uber Technologies
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PIFMF and Uber is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding PT Indofood Sukses and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies 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 Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of PT Indofood i.e., PT Indofood and Uber Technologies go up and down completely randomly.
Pair Corralation between PT Indofood and Uber Technologies
If you would invest 39.00 in PT Indofood Sukses on September 12, 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 Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
PT Indofood Sukses vs. Uber Technologies
Performance |
| Timeline |
| PT Indofood Sukses |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Uber Technologies |
PT Indofood and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Indofood and Uber Technologies
The main advantage of trading using opposite PT Indofood and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Indofood position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.| PT Indofood vs. Lipocine | PT Indofood vs. Uber Technologies | PT Indofood vs. Allient | PT Indofood vs. Meiwu Technology Co |
| Uber Technologies vs. Manhattan Associates | Uber Technologies vs. Paycom Soft | Uber Technologies vs. Clearwater Analytics Holdings | Uber Technologies vs. Procore Technologies |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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