Correlation Between PT Indofood and Unitronix
Can any of the company-specific risk be diversified away by investing in both PT Indofood and Unitronix 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 Unitronix 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 Unitronix, you can compare the effects of market volatilities on PT Indofood and Unitronix 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 Unitronix. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Indofood and Unitronix.
Diversification Opportunities for PT Indofood and Unitronix
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PIFMF and Unitronix is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding PT Indofood Sukses and Unitronix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unitronix 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 Unitronix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unitronix has no effect on the direction of PT Indofood i.e., PT Indofood and Unitronix go up and down completely randomly.
Pair Corralation between PT Indofood and Unitronix
If you would invest 8.50 in Unitronix on August 27, 2024 and sell it today you would earn a total of 4.50 from holding Unitronix or generate 52.94% 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. Unitronix
Performance |
| Timeline |
| PT Indofood Sukses |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Unitronix |
PT Indofood and Unitronix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Indofood and Unitronix
The main advantage of trading using opposite PT Indofood and Unitronix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Indofood position performs unexpectedly, Unitronix 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 Unitronix will offset losses from the drop in Unitronix's long position.| PT Indofood vs. Aldel Financial II | PT Indofood vs. Equinix | PT Indofood vs. Beyond Meat | PT Indofood vs. Grocery Outlet Holding |
| Unitronix vs. Leidos Holdings | Unitronix vs. CACI International | Unitronix vs. Parsons Corp | Unitronix vs. ASGN Inc |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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