Correlation Between FRACTAL GAMING and Telkom Indonesia
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and Telkom 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 FRACTAL GAMING and Telkom Indonesia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FRACTAL GAMING GROUP and Telkom Indonesia Tbk, you can compare the effects of market volatilities on FRACTAL GAMING and Telkom 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 FRACTAL GAMING with a short position of Telkom Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and Telkom Indonesia.
Diversification Opportunities for FRACTAL GAMING and Telkom Indonesia
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FRACTAL and Telkom is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and Telkom Indonesia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telkom Indonesia Tbk and FRACTAL GAMING 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 FRACTAL GAMING GROUP are associated (or correlated) with Telkom Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telkom Indonesia Tbk has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and Telkom Indonesia go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and Telkom Indonesia
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 0.64 times more return on investment than Telkom Indonesia. However, FRACTAL GAMING GROUP is 1.55 times less risky than Telkom Indonesia. It trades about 0.27 of its potential returns per unit of risk. Telkom Indonesia Tbk is currently generating about 0.02 per unit of risk. If you would invest 266.00 in FRACTAL GAMING GROUP on October 20, 2024 and sell it today you would earn a total of 30.00 from holding FRACTAL GAMING GROUP or generate 11.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. Telkom Indonesia Tbk
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| Telkom Indonesia Tbk |
FRACTAL GAMING and Telkom Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and Telkom Indonesia
The main advantage of trading using opposite FRACTAL GAMING and Telkom Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, Telkom 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 Telkom Indonesia will offset losses from the drop in Telkom Indonesia's long position.| FRACTAL GAMING vs. ONWARD MEDICAL BV | FRACTAL GAMING vs. Compugroup Medical SE | FRACTAL GAMING vs. Xenia Hotels Resorts | FRACTAL GAMING vs. Merit Medical Systems |
| Telkom Indonesia vs. MOVIE GAMES SA | Telkom Indonesia vs. FRACTAL GAMING GROUP | Telkom Indonesia vs. PENN NATL GAMING | Telkom Indonesia vs. Scientific Games |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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