Correlation Between Indofood Sukses and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Indofood Sukses and Ainsworth Game 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 Indofood Sukses and Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indofood Sukses Makmur and Ainsworth Game Technology, you can compare the effects of market volatilities on Indofood Sukses and Ainsworth Game 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 Indofood Sukses with a short position of Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indofood Sukses and Ainsworth Game.
Diversification Opportunities for Indofood Sukses and Ainsworth Game
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Indofood and Ainsworth is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Indofood Sukses Makmur and Ainsworth Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainsworth Game Technology and Indofood Sukses 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 Indofood Sukses Makmur are associated (or correlated) with Ainsworth Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ainsworth Game Technology has no effect on the direction of Indofood Sukses i.e., Indofood Sukses and Ainsworth Game go up and down completely randomly.
Pair Corralation between Indofood Sukses and Ainsworth Game
Assuming the 90 days horizon Indofood Sukses Makmur is expected to generate 0.96 times more return on investment than Ainsworth Game. However, Indofood Sukses Makmur is 1.04 times less risky than Ainsworth Game. It trades about 0.03 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.02 per unit of risk. If you would invest 2,046 in Indofood Sukses Makmur on August 27, 2024 and sell it today you would earn a total of 363.00 from holding Indofood Sukses Makmur or generate 17.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indofood Sukses Makmur vs. Ainsworth Game Technology
Performance |
| Timeline |
| Indofood Sukses Makmur |
| Ainsworth Game Technology |
Indofood Sukses and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indofood Sukses and Ainsworth Game
The main advantage of trading using opposite Indofood Sukses and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indofood Sukses position performs unexpectedly, Ainsworth Game 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 Ainsworth Game will offset losses from the drop in Ainsworth Game's long position.| Indofood Sukses vs. Toyo Suisan Kaisha | Indofood Sukses vs. Bank Mandiri Persero | Indofood Sukses vs. Astra International Tbk | Indofood Sukses vs. United Tractors Tbk |
| Ainsworth Game vs. Intema Solutions | Ainsworth Game vs. 888 Holdings | Ainsworth Game vs. Royal Wins | Ainsworth Game vs. Real Luck Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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