Correlation Between Anterix and Telkom Indonesia
Can any of the company-specific risk be diversified away by investing in both Anterix 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 Anterix and Telkom Indonesia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anterix and Telkom Indonesia Tbk, you can compare the effects of market volatilities on Anterix 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 Anterix with a short position of Telkom Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anterix and Telkom Indonesia.
Diversification Opportunities for Anterix and Telkom Indonesia
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anterix and Telkom is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Anterix 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 Anterix 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 Anterix 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 Anterix i.e., Anterix and Telkom Indonesia go up and down completely randomly.
Pair Corralation between Anterix and Telkom Indonesia
Given the investment horizon of 90 days Anterix is expected to generate 1.0 times more return on investment than Telkom Indonesia. However, Anterix is 1.0 times less risky than Telkom Indonesia. It trades about 0.06 of its potential returns per unit of risk. Telkom Indonesia Tbk is currently generating about -0.16 per unit of risk. If you would invest 3,297 in Anterix on August 27, 2024 and sell it today you would earn a total of 75.00 from holding Anterix or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anterix vs. Telkom Indonesia Tbk
Performance |
| Timeline |
| Anterix |
| Telkom Indonesia Tbk |
Anterix and Telkom Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anterix and Telkom Indonesia
The main advantage of trading using opposite Anterix and Telkom Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anterix 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.| Anterix vs. Shenandoah Telecommunications Co | Anterix vs. Liberty Broadband Corp | Anterix vs. Ooma Inc | Anterix vs. IDT Corporation |
| Telkom Indonesia vs. Liberty Broadband Srs | Telkom Indonesia vs. Ribbon Communications | Telkom Indonesia vs. Liberty Broadband Srs | Telkom Indonesia vs. Shenandoah Telecommunications Co |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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