Correlation Between Treasury Wine and Unilever Indonesia
Can any of the company-specific risk be diversified away by investing in both Treasury Wine and Unilever Indonesia 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 Treasury Wine and Unilever Indonesia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Treasury Wine Estates and Unilever Indonesia Tbk, you can compare the effects of market volatilities on Treasury Wine and Unilever Indonesia 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 Treasury Wine with a short position of Unilever Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Treasury Wine and Unilever Indonesia.
Diversification Opportunities for Treasury Wine and Unilever Indonesia
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Treasury and Unilever is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Treasury Wine Estates and Unilever Indonesia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unilever Indonesia Tbk and Treasury Wine 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 Treasury Wine Estates are associated (or correlated) with Unilever Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unilever Indonesia Tbk has no effect on the direction of Treasury Wine i.e., Treasury Wine and Unilever Indonesia go up and down completely randomly.
Pair Corralation between Treasury Wine and Unilever Indonesia
Assuming the 90 days horizon Treasury Wine Estates is expected to under-perform the Unilever Indonesia. But the pink sheet apears to be less risky and, when comparing its historical volatility, Treasury Wine Estates is 1.33 times less risky than Unilever Indonesia. The pink sheet trades about -0.18 of its potential returns per unit of risk. The Unilever Indonesia Tbk is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 210.00 in Unilever Indonesia Tbk on August 16, 2025 and sell it today you would earn a total of 67.00 from holding Unilever Indonesia Tbk or generate 31.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Treasury Wine Estates vs. Unilever Indonesia Tbk
Performance |
| Timeline |
| Treasury Wine Estates |
| Unilever Indonesia Tbk |
Treasury Wine and Unilever Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Treasury Wine and Unilever Indonesia
The main advantage of trading using opposite Treasury Wine and Unilever Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Treasury Wine position performs unexpectedly, Unilever Indonesia 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 Unilever Indonesia will offset losses from the drop in Unilever Indonesia's long position.| Treasury Wine vs. Endeavour Group Limited | Treasury Wine vs. Hengan Intl Group | Treasury Wine vs. Kuala Lumpur Kepong | Treasury Wine vs. Rmy Cointreau SA |
| Unilever Indonesia vs. Kimberly Clark de Mxico | Unilever Indonesia vs. Kimberly Clark de Mexico | Unilever Indonesia vs. Socit BIC SA | Unilever Indonesia vs. Emmi AG |
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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