Correlation Between INDOFOOD AGRI and HF SINCLAIR
Can any of the company-specific risk be diversified away by investing in both INDOFOOD AGRI and HF SINCLAIR 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 HF SINCLAIR 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 HF SINCLAIR P, you can compare the effects of market volatilities on INDOFOOD AGRI and HF SINCLAIR 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 HF SINCLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDOFOOD AGRI and HF SINCLAIR.
Diversification Opportunities for INDOFOOD AGRI and HF SINCLAIR
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between INDOFOOD and HL80 is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding INDOFOOD AGRI RES and HF SINCLAIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF SINCLAIR P 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 HF SINCLAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HF SINCLAIR P has no effect on the direction of INDOFOOD AGRI i.e., INDOFOOD AGRI and HF SINCLAIR go up and down completely randomly.
Pair Corralation between INDOFOOD AGRI and HF SINCLAIR
If you would invest 22.00 in INDOFOOD AGRI RES on September 14, 2024 and sell it today you would earn a total of 0.00 from holding INDOFOOD AGRI RES or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INDOFOOD AGRI RES vs. HF SINCLAIR P
Performance |
| Timeline |
| INDOFOOD AGRI RES |
| HF SINCLAIR P |
INDOFOOD AGRI and HF SINCLAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INDOFOOD AGRI and HF SINCLAIR
The main advantage of trading using opposite INDOFOOD AGRI and HF SINCLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDOFOOD AGRI position performs unexpectedly, HF SINCLAIR 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 HF SINCLAIR will offset losses from the drop in HF SINCLAIR's long position.| INDOFOOD AGRI vs. REGAL ASIAN INVESTMENTS | INDOFOOD AGRI vs. Chuangs China Investments | INDOFOOD AGRI vs. ECHO INVESTMENT ZY | INDOFOOD AGRI vs. Apollo Investment Corp |
| HF SINCLAIR vs. INDOFOOD AGRI RES | HF SINCLAIR vs. Gamma Communications plc | HF SINCLAIR vs. SENECA FOODS A | HF SINCLAIR vs. ASSOC BR FOODS |
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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