Correlation Between INDOFOOD AGRI and Siamgas
Can any of the company-specific risk be diversified away by investing in both INDOFOOD AGRI and Siamgas 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 Siamgas 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 Siamgas And Petrochemicals, you can compare the effects of market volatilities on INDOFOOD AGRI and Siamgas 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 Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDOFOOD AGRI and Siamgas.
Diversification Opportunities for INDOFOOD AGRI and Siamgas
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INDOFOOD and Siamgas is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding INDOFOOD AGRI RES and Siamgas And Petrochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siamgas And Petroche 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 Siamgas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siamgas And Petroche has no effect on the direction of INDOFOOD AGRI i.e., INDOFOOD AGRI and Siamgas go up and down completely randomly.
Pair Corralation between INDOFOOD AGRI and Siamgas
If you would invest 18.00 in Siamgas And Petrochemicals on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Siamgas And Petrochemicals 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. Siamgas And Petrochemicals
Performance |
Timeline |
INDOFOOD AGRI RES |
Siamgas And Petroche |
INDOFOOD AGRI and Siamgas Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with INDOFOOD AGRI and Siamgas
The main advantage of trading using opposite INDOFOOD AGRI and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDOFOOD AGRI position performs unexpectedly, Siamgas 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 Siamgas will offset losses from the drop in Siamgas' long position.INDOFOOD AGRI vs. Apple Inc | INDOFOOD AGRI vs. Apple Inc | INDOFOOD AGRI vs. Apple Inc | INDOFOOD AGRI vs. Microsoft |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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