Correlation Between Indosterling Technomedia and Indofood Cbp
Can any of the company-specific risk be diversified away by investing in both Indosterling Technomedia and Indofood Cbp 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 Indosterling Technomedia and Indofood Cbp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indosterling Technomedia Tbk and Indofood Cbp Sukses, you can compare the effects of market volatilities on Indosterling Technomedia and Indofood Cbp 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 Indosterling Technomedia with a short position of Indofood Cbp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosterling Technomedia and Indofood Cbp.
Diversification Opportunities for Indosterling Technomedia and Indofood Cbp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indosterling and Indofood is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indosterling Technomedia Tbk and Indofood Cbp Sukses in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indofood Cbp Sukses and Indosterling Technomedia 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 Indosterling Technomedia Tbk are associated (or correlated) with Indofood Cbp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indofood Cbp Sukses has no effect on the direction of Indosterling Technomedia i.e., Indosterling Technomedia and Indofood Cbp go up and down completely randomly.
Pair Corralation between Indosterling Technomedia and Indofood Cbp
If you would invest 1,150,000 in Indofood Cbp Sukses on September 2, 2024 and sell it today you would earn a total of 40,000 from holding Indofood Cbp Sukses or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Indosterling Technomedia Tbk vs. Indofood Cbp Sukses
Performance |
| Timeline |
| Indosterling Technomedia |
| Indofood Cbp Sukses |
Indosterling Technomedia and Indofood Cbp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosterling Technomedia and Indofood Cbp
The main advantage of trading using opposite Indosterling Technomedia and Indofood Cbp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosterling Technomedia position performs unexpectedly, Indofood Cbp 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 Indofood Cbp will offset losses from the drop in Indofood Cbp's long position.| Indosterling Technomedia vs. Multipolar Technology Tbk | Indosterling Technomedia vs. Digital Mediatama Maxima | Indosterling Technomedia vs. M Cash Integrasi | Indosterling Technomedia vs. NFC Indonesia PT |
| Indofood Cbp vs. Unilever Indonesia Tbk | Indofood Cbp vs. PT Indofood Sukses | Indofood Cbp vs. Astra International Tbk | Indofood Cbp vs. Telkom Indonesia Tbk |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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