Correlation Between PT Indosat and Axfood AB
Can any of the company-specific risk be diversified away by investing in both PT Indosat and Axfood AB 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 Indosat and Axfood AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Indosat Tbk and Axfood AB ADR, you can compare the effects of market volatilities on PT Indosat and Axfood AB 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 Indosat with a short position of Axfood AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Indosat and Axfood AB.
Diversification Opportunities for PT Indosat and Axfood AB
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between PTITF and Axfood is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Indosat Tbk and Axfood AB ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axfood AB ADR and PT Indosat 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 Indosat Tbk are associated (or correlated) with Axfood AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axfood AB ADR has no effect on the direction of PT Indosat i.e., PT Indosat and Axfood AB go up and down completely randomly.
Pair Corralation between PT Indosat and Axfood AB
If you would invest 2,522 in Axfood AB ADR on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Axfood AB ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 5.0% |
| Values | Daily Returns |
PT Indosat Tbk vs. Axfood AB ADR
Performance |
| Timeline |
| PT Indosat Tbk |
| Axfood AB ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Indosat and Axfood AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Indosat and Axfood AB
The main advantage of trading using opposite PT Indosat and Axfood AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Indosat position performs unexpectedly, Axfood AB 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 Axfood AB will offset losses from the drop in Axfood AB's long position.| PT Indosat vs. Verizon Communications | PT Indosat vs. ATT Inc | PT Indosat vs. Comcast Corp | PT Indosat vs. Deutsche Telekom AG |
| Axfood AB vs. Seven i Holdings | Axfood AB vs. Carrefour SA | Axfood AB vs. Kesko Oyj ADR | Axfood AB vs. J Sainsbury PLC |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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