Correlation Between INDOFOOD AGRI and Grammer AG
Can any of the company-specific risk be diversified away by investing in both INDOFOOD AGRI and Grammer AG 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 AGRI and Grammer AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INDOFOOD AGRI RES and Grammer AG, you can compare the effects of market volatilities on INDOFOOD AGRI and Grammer AG 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 AGRI with a short position of Grammer AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDOFOOD AGRI and Grammer AG.
Diversification Opportunities for INDOFOOD AGRI and Grammer AG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between INDOFOOD and Grammer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding INDOFOOD AGRI RES and Grammer AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grammer AG and INDOFOOD AGRI 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 AGRI RES are associated (or correlated) with Grammer AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grammer AG has no effect on the direction of INDOFOOD AGRI i.e., INDOFOOD AGRI and Grammer AG go up and down completely randomly.
Pair Corralation between INDOFOOD AGRI and Grammer AG
If you would invest 21.00 in INDOFOOD AGRI RES on August 31, 2024 and sell it today you would earn a total of 1.00 from holding INDOFOOD AGRI RES or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
INDOFOOD AGRI RES vs. Grammer AG
Performance |
| Timeline |
| INDOFOOD AGRI RES |
| Grammer AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
INDOFOOD AGRI and Grammer AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INDOFOOD AGRI and Grammer AG
The main advantage of trading using opposite INDOFOOD AGRI and Grammer AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDOFOOD AGRI position performs unexpectedly, Grammer AG 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 Grammer AG will offset losses from the drop in Grammer AG's long position.| INDOFOOD AGRI vs. SIVERS SEMICONDUCTORS AB | INDOFOOD AGRI vs. Darden Restaurants | INDOFOOD AGRI vs. Reliance Steel Aluminum | INDOFOOD AGRI vs. Q2M Managementberatung AG |
| Grammer AG vs. SEKISUI CHEMICAL | Grammer AG vs. Aedas Homes SA | Grammer AG vs. Siamgas And Petrochemicals | Grammer AG vs. Mitsui Chemicals |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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