Correlation Between Indofood Sukses and Sigma Labs
Can any of the company-specific risk be diversified away by investing in both Indofood Sukses and Sigma Labs 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 Sigma Labs 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 Sigma Labs, you can compare the effects of market volatilities on Indofood Sukses and Sigma Labs 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 Sigma Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indofood Sukses and Sigma Labs.
Diversification Opportunities for Indofood Sukses and Sigma Labs
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Indofood and Sigma is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Indofood Sukses Makmur and Sigma Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sigma Labs 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 Sigma Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sigma Labs has no effect on the direction of Indofood Sukses i.e., Indofood Sukses and Sigma Labs go up and down completely randomly.
Pair Corralation between Indofood Sukses and Sigma Labs
If you would invest 2,318 in Indofood Sukses Makmur on August 24, 2024 and sell it today you would lose (18.00) from holding Indofood Sukses Makmur or give up 0.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Indofood Sukses Makmur vs. Sigma Labs
Performance |
| Timeline |
| Indofood Sukses Makmur |
| Sigma Labs |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Indofood Sukses and Sigma Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indofood Sukses and Sigma Labs
The main advantage of trading using opposite Indofood Sukses and Sigma Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indofood Sukses position performs unexpectedly, Sigma Labs 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 Sigma Labs will offset losses from the drop in Sigma Labs' long position.| Indofood Sukses vs. Artisan Consumer Goods | Indofood Sukses vs. Avi Ltd ADR | Indofood Sukses vs. Aryzta AG PK | Indofood Sukses vs. The A2 Milk |
| Sigma Labs vs. Flint Telecom Group | Sigma Labs vs. Castellum | Sigma Labs vs. Datametrex AI Limited | Sigma Labs vs. TTEC Holdings |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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