Thursday, April 10, 2014

CPO - Plantation stocks

There are many ways people make decision on "how" to invest. More often you will end up listening to some recommendation from people who haven't even toil their hands in the industry. Take the case of plantation stocks. You will be listening to back seat (desk) analyst telling you their recommendations.

Sometime you will end up listening to people you come in contact the wonder oil tree! The plantation or small holding profits blah blah blah.

My principle is to investigate the truth and nothing faster, simpler and more accurate than to layout the prices to see if there is correlation across.

The fist conclusion is the correlation between CPO prices and stocks is NOT super positive correlated. I will say that the correlation are POSITVE - NEGATIVE - NEUTRAL depending on the period.

KLK - broken away or decouple from CPO
IOI & SIME - NEUTRAL with CPO
    
Investing requires more than just reading and listening to others. Do yourself a big FAVOR ... check the historical prices and see if others opinions and prices correlate!

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