Correlation Between Indofood Sukses and Probe Metals

Can any of the company-specific risk be diversified away by investing in both Indofood Sukses and Probe Metals 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 Probe Metals 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 Probe Metals, you can compare the effects of market volatilities on Indofood Sukses and Probe Metals 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 Probe Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indofood Sukses and Probe Metals.

Diversification Opportunities for Indofood Sukses and Probe Metals

-0.53

Correlation Coefficient

Indofood Sukses  Probe Metals

Excellent diversification

The 3 months correlation between Indofood and Probe is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Indofood Sukses Makmur and Probe Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Probe Metals 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 Probe Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Probe Metals has no effect on the direction of Indofood Sukses i.e., Indofood Sukses and Probe Metals go up and down completely randomly.

Pair Corralation between Indofood Sukses and Probe Metals

Assuming the 90 days horizon Indofood Sukses Makmur is expected to under-perform the Probe Metals. In addition to that, Indofood Sukses is 5.06 times more volatile than Probe Metals. It trades about -0.11 of its total potential returns per unit of risk. Probe Metals is currently generating about 0.19 per unit of volatility. If you would invest  259.00  in Probe Metals on September 27, 2025 and sell it today you would earn a total of  7.00  from holding Probe Metals or generate 2.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Indofood Sukses Makmur  vs.  Probe Metals

Indofood Sukses Makmur

Risk-Adjusted Performance

Weakest

Over the last 90 days Indofood Sukses Makmur has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's primary indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Probe Metals

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Probe Metals are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental drivers, Probe Metals reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Indofood Sukses and Probe Metals

The main advantage of trading using opposite Indofood Sukses and Probe Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indofood Sukses position performs unexpectedly, Probe Metals 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 Probe Metals will offset losses from the drop in Probe Metals' long position.

The idea behind Indofood Sukses Makmur and Probe Metals pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.