Correlation Between Comcast Corp and Telkom Indonesia
Can any of the company-specific risk be diversified away by investing in both Comcast Corp 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 Comcast Corp and Telkom Indonesia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comcast Corp and Telkom Indonesia Tbk, you can compare the effects of market volatilities on Comcast Corp 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 Comcast Corp with a short position of Telkom Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comcast Corp and Telkom Indonesia.
Diversification Opportunities for Comcast Corp and Telkom Indonesia
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Comcast and Telkom is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp 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 Comcast Corp 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 Comcast Corp 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 Comcast Corp i.e., Comcast Corp and Telkom Indonesia go up and down completely randomly.
Pair Corralation between Comcast Corp and Telkom Indonesia
Assuming the 90 days horizon Comcast Corp is expected to generate 0.88 times more return on investment than Telkom Indonesia. However, Comcast Corp is 1.13 times less risky than Telkom Indonesia. It trades about 0.04 of its potential returns per unit of risk. Telkom Indonesia Tbk is currently generating about -0.17 per unit of risk. If you would invest 4,207 in Comcast Corp on August 30, 2024 and sell it today you would earn a total of 49.00 from holding Comcast Corp or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comcast Corp vs. Telkom Indonesia Tbk
Performance |
| Timeline |
| Comcast Corp |
| Telkom Indonesia Tbk |
Comcast Corp and Telkom Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comcast Corp and Telkom Indonesia
The main advantage of trading using opposite Comcast Corp and Telkom Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comcast Corp 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.| Comcast Corp vs. Liberty Global PLC | Comcast Corp vs. Liberty Global PLC | Comcast Corp vs. Liberty Broadband Srs | Comcast Corp vs. Shenandoah Telecommunications Co |
| Telkom Indonesia vs. T Mobile | Telkom Indonesia vs. Comcast Corp | Telkom Indonesia vs. Verizon Communications | Telkom Indonesia vs. Charter Communications |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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