Correlation Between Indo Global and All For

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

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

Diversification Opportunities for Indo Global and All For

0.0

Correlation Coefficient

Indo Global  All For

Pay attention - limited upside

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

Pair Corralation between Indo Global and All For

If you would invest  0.04  in Indo Global Exchange on September 3, 2024 and sell it today you would earn a total of  0.03  from holding Indo Global Exchange or generate 75.0% return on investment over 90 days.

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

Indo Global Exchange  vs.  All For One

Indo Global Exchange

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Indo Global Exchange are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Indo Global showed solid returns over the last few months and may actually be approaching a breakup point.

All For One

Risk-Adjusted Performance

0 of 100

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 current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Indo Global and All For

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

The idea behind Indo Global Exchange and All For One 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.