Correlation Between Sanofi ADR and Kalbe Farma
Can any of the company-specific risk be diversified away by investing in both Sanofi ADR and Kalbe 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 Sanofi ADR and Kalbe Farma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sanofi ADR and Kalbe Farma Tbk, you can compare the effects of market volatilities on Sanofi ADR and Kalbe 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 Sanofi ADR with a short position of Kalbe Farma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanofi ADR and Kalbe Farma.
Diversification Opportunities for Sanofi ADR and Kalbe Farma
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sanofi and Kalbe is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sanofi ADR and Kalbe Farma Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalbe Farma Tbk and Sanofi ADR 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 Sanofi ADR are associated (or correlated) with Kalbe Farma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalbe Farma Tbk has no effect on the direction of Sanofi ADR i.e., Sanofi ADR and Kalbe Farma go up and down completely randomly.
Pair Corralation between Sanofi ADR and Kalbe Farma
If you would invest 4,821 in Sanofi ADR on December 29, 2023 and sell it today you would earn a total of 39.00 from holding Sanofi ADR or generate 0.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sanofi ADR vs. Kalbe Farma Tbk
Performance |
Timeline |
Sanofi ADR |
Kalbe Farma Tbk |
Sanofi ADR and Kalbe Farma Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sanofi ADR and Kalbe Farma
The main advantage of trading using opposite Sanofi ADR and Kalbe Farma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanofi ADR position performs unexpectedly, Kalbe 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 Kalbe Farma will offset losses from the drop in Kalbe Farma's long position.Sanofi ADR vs. Madrigal Pharmaceuticals | Sanofi ADR vs. 23Andme Holding Co | Sanofi ADR vs. Moleculin Biotech | Sanofi ADR vs. Equillium |
Kalbe Farma vs. Eli Lilly And | Kalbe Farma vs. Johnson Johnson | Kalbe Farma vs. Merck Company | Kalbe Farma vs. Roche Holding |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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