Correlation Between Q2 Holdings and PT Indofood

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Can any of the company-specific risk be diversified away by investing in both Q2 Holdings and PT Indofood 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 Q2 Holdings and PT Indofood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Q2 Holdings and PT Indofood Sukses, you can compare the effects of market volatilities on Q2 Holdings and PT Indofood 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 Q2 Holdings with a short position of PT Indofood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Q2 Holdings and PT Indofood.

Diversification Opportunities for Q2 Holdings and PT Indofood

QTWOPIFMFDiversified AwayQTWOPIFMFDiversified Away100%
-0.12
  Correlation Coefficient

Good diversification

The 3 months correlation between QTWO and PIFMF is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Q2 Holdings and PT Indofood Sukses in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Indofood Sukses and Q2 Holdings 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 Q2 Holdings are associated (or correlated) with PT Indofood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Indofood Sukses has no effect on the direction of Q2 Holdings i.e., Q2 Holdings and PT Indofood go up and down completely randomly.

Pair Corralation between Q2 Holdings and PT Indofood

If you would invest  8,450  in Q2 Holdings on October 28, 2024 and sell it today you would earn a total of  964.00  from holding Q2 Holdings or generate 11.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy1.64%
ValuesDaily Returns

Q2 Holdings  vs.  PT Indofood Sukses

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -100102030
JavaScript chart by amCharts 3.21.15QTWO PIFMF
       Timeline  
Q2 Holdings 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Q2 Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Q2 Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan859095100105110
PT Indofood Sukses 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days PT Indofood Sukses has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, PT Indofood is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Q2 Holdings and PT Indofood Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.48-6.35-4.22-2.090.02.154.386.68.8311.05 0.050.100.150.20
JavaScript chart by amCharts 3.21.15QTWO PIFMF
       Returns  

Pair Trading with Q2 Holdings and PT Indofood

The main advantage of trading using opposite Q2 Holdings and PT Indofood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Q2 Holdings position performs unexpectedly, PT Indofood 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 PT Indofood will offset losses from the drop in PT Indofood's long position.
The idea behind Q2 Holdings and PT Indofood Sukses 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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