Correlation Between All For and Indo Global

Can any of the company-specific risk be diversified away by investing in both All For and Indo Global 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 All For and Indo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between All For One and Indo Global Exchange, you can compare the effects of market volatilities on All For and Indo Global 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 All For with a short position of Indo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of All For and Indo Global.

Diversification Opportunities for All For and Indo Global

0.0

Correlation Coefficient

All For  Indo Global

Pay attention - limited upside

The 3 months correlation between All and Indo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding All For One and Indo Global Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indo Global Exchange and All For 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 All For One are associated (or correlated) with Indo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indo Global Exchange has no effect on the direction of All For i.e., All For and Indo Global go up and down completely randomly.

Pair Corralation between All For and Indo Global

If you would invest  0.07  in Indo Global Exchange on December 26, 2024 and sell it today you would lose (0.01) from holding Indo Global Exchange or give up 14.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

All For One  vs.  Indo Global Exchange

All For One

Risk-Adjusted Performance

Very Weak

Over the last 90 days All For One has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, All For is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Indo Global Exchange

Risk-Adjusted Performance

Very Weak

Over the last 90 days Indo Global Exchange has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Indo Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with All For and Indo Global

The main advantage of trading using opposite All For and Indo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if All For position performs unexpectedly, Indo Global 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 Indo Global will offset losses from the drop in Indo Global's long position.

The idea behind All For One and Indo Global Exchange pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.