Correlation Between Indofarma Tbk and Kimia Farma
Can any of the company-specific risk be diversified away by investing in both Indofarma Tbk and Kimia Farma 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 Indofarma Tbk and Kimia Farma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indofarma Tbk and Kimia Farma Persero, you can compare the effects of market volatilities on Indofarma Tbk and Kimia Farma 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 Indofarma Tbk with a short position of Kimia Farma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indofarma Tbk and Kimia Farma.
Diversification Opportunities for Indofarma Tbk and Kimia Farma
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indofarma and Kimia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indofarma Tbk and Kimia Farma Persero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimia Farma Persero and Indofarma Tbk 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 Indofarma Tbk are associated (or correlated) with Kimia Farma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimia Farma Persero has no effect on the direction of Indofarma Tbk i.e., Indofarma Tbk and Kimia Farma go up and down completely randomly.
Pair Corralation between Indofarma Tbk and Kimia Farma
If you would invest 12,600 in Indofarma Tbk on September 15, 2024 and sell it today you would earn a total of 0.00 from holding Indofarma Tbk or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Indofarma Tbk vs. Kimia Farma Persero
Performance |
Timeline |
Indofarma Tbk |
Kimia Farma Persero |
Indofarma Tbk and Kimia Farma Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Indofarma Tbk and Kimia Farma
The main advantage of trading using opposite Indofarma Tbk and Kimia Farma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indofarma Tbk position performs unexpectedly, Kimia Farma 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 Kimia Farma will offset losses from the drop in Kimia Farma's long position.Indofarma Tbk vs. Mitra Keluarga Karyasehat | Indofarma Tbk vs. Siloam International Hospitals | Indofarma Tbk vs. Sumber Alfaria Trijaya | Indofarma Tbk vs. Elang Mahkota Teknologi |
Kimia Farma vs. Mitra Keluarga Karyasehat | Kimia Farma vs. Siloam International Hospitals | Kimia Farma vs. Sumber Alfaria Trijaya | Kimia Farma vs. Elang Mahkota Teknologi |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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