Correlation Between INDOFOOD AGRI and Hannover Rck
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By analyzing existing cross correlation between INDOFOOD AGRI RES and Hannover Rck SE, you can compare the effects of market volatilities on INDOFOOD AGRI and Hannover Rck 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 Hannover Rck. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDOFOOD AGRI and Hannover Rck.
Diversification Opportunities for INDOFOOD AGRI and Hannover Rck
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INDOFOOD and Hannover is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding INDOFOOD AGRI RES and Hannover Rck SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hannover Rck SE 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 Hannover Rck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hannover Rck SE has no effect on the direction of INDOFOOD AGRI i.e., INDOFOOD AGRI and Hannover Rck go up and down completely randomly.
Pair Corralation between INDOFOOD AGRI and Hannover Rck
Assuming the 90 days trading horizon INDOFOOD AGRI is expected to generate 15.15 times less return on investment than Hannover Rck. In addition to that, INDOFOOD AGRI is 1.68 times more volatile than Hannover Rck SE. It trades about 0.01 of its total potential returns per unit of risk. Hannover Rck SE is currently generating about 0.24 per unit of volatility. If you would invest 23,800 in Hannover Rck SE on September 4, 2024 and sell it today you would earn a total of 1,500 from holding Hannover Rck SE or generate 6.3% 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. Hannover Rck SE
Performance |
| Timeline |
| INDOFOOD AGRI RES |
| Hannover Rck SE |
INDOFOOD AGRI and Hannover Rck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INDOFOOD AGRI and Hannover Rck
The main advantage of trading using opposite INDOFOOD AGRI and Hannover Rck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDOFOOD AGRI position performs unexpectedly, Hannover Rck 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 Hannover Rck will offset losses from the drop in Hannover Rck's long position.| INDOFOOD AGRI vs. NEWELL RUBBERMAID | INDOFOOD AGRI vs. PENN NATL GAMING | INDOFOOD AGRI vs. Mitsubishi Materials | INDOFOOD AGRI vs. Penn National Gaming |
| Hannover Rck vs. Zoom Video Communications | Hannover Rck vs. AVITA Medical | Hannover Rck vs. SCANDMEDICAL SOLDK 040 | Hannover Rck vs. UNITED UTILITIES GR |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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