Correlation Between Deutsche Telekom and PT Sarana
Can any of the company-specific risk be diversified away by investing in both Deutsche Telekom and PT Sarana 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 Deutsche Telekom and PT Sarana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Telekom AG and PT Sarana Menara, you can compare the effects of market volatilities on Deutsche Telekom and PT Sarana 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 Deutsche Telekom with a short position of PT Sarana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Telekom and PT Sarana.
Diversification Opportunities for Deutsche Telekom and PT Sarana
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Deutsche and SMNUF is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Telekom AG and PT Sarana Menara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Sarana Menara and Deutsche Telekom 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 Deutsche Telekom AG are associated (or correlated) with PT Sarana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Sarana Menara has no effect on the direction of Deutsche Telekom i.e., Deutsche Telekom and PT Sarana go up and down completely randomly.
Pair Corralation between Deutsche Telekom and PT Sarana
If you would invest 2,990 in Deutsche Telekom AG on August 29, 2024 and sell it today you would earn a total of 177.00 from holding Deutsche Telekom AG or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Deutsche Telekom AG vs. PT Sarana Menara
Performance |
| Timeline |
| Deutsche Telekom |
| PT Sarana Menara |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Deutsche Telekom and PT Sarana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Telekom and PT Sarana
The main advantage of trading using opposite Deutsche Telekom and PT Sarana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Telekom position performs unexpectedly, PT Sarana 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 PT Sarana will offset losses from the drop in PT Sarana's long position.| Deutsche Telekom vs. Verizon Communications | Deutsche Telekom vs. ATT Inc | Deutsche Telekom vs. Pharvaris BV | Deutsche Telekom vs. Direxion Daily FTSE |
| PT Sarana vs. Proximus NV ADR | PT Sarana vs. Singapore Telecommunications Limited | PT Sarana vs. Telstra Limited | PT Sarana vs. MTN Group Ltd |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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