Correlation Between Indofood Sukses and First Horizon
Can any of the company-specific risk be diversified away by investing in both Indofood Sukses and First Horizon 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 Sukses and First Horizon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indofood Sukses Makmur and First Horizon National, you can compare the effects of market volatilities on Indofood Sukses and First Horizon 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 Sukses with a short position of First Horizon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indofood Sukses and First Horizon.
Diversification Opportunities for Indofood Sukses and First Horizon
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Indofood and First is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Indofood Sukses Makmur and First Horizon National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Horizon National and Indofood Sukses 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 Sukses Makmur are associated (or correlated) with First Horizon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Horizon National has no effect on the direction of Indofood Sukses i.e., Indofood Sukses and First Horizon go up and down completely randomly.
Pair Corralation between Indofood Sukses and First Horizon
Assuming the 90 days horizon Indofood Sukses Makmur is expected to under-perform the First Horizon. In addition to that, Indofood Sukses is 2.15 times more volatile than First Horizon National. It trades about -0.05 of its total potential returns per unit of risk. First Horizon National is currently generating about -0.06 per unit of volatility. If you would invest 2,210 in First Horizon National on July 21, 2025 and sell it today you would lose (182.00) from holding First Horizon National or give up 8.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indofood Sukses Makmur vs. First Horizon National
Performance |
| Timeline |
| Indofood Sukses Makmur |
| First Horizon National |
Indofood Sukses and First Horizon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indofood Sukses and First Horizon
The main advantage of trading using opposite Indofood Sukses and First Horizon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indofood Sukses position performs unexpectedly, First Horizon 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 First Horizon will offset losses from the drop in First Horizon's long position.| Indofood Sukses vs. First Pacific | Indofood Sukses vs. First Pacific | Indofood Sukses vs. Yamazaki Baking Co | Indofood Sukses vs. China Feihe Limited |
| First Horizon vs. Banco Santander Chile | First Horizon vs. Comerica Incorporated | First Horizon vs. SouthState | First Horizon vs. Webster Financial |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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