Correlation Between PT Indosat and Singapore Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both PT Indosat and Singapore Telecommunicatio 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 PT Indosat and Singapore Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Indosat Tbk and Singapore Telecommunications Limited, you can compare the effects of market volatilities on PT Indosat and Singapore Telecommunicatio 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 PT Indosat with a short position of Singapore Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Indosat and Singapore Telecommunicatio.
Diversification Opportunities for PT Indosat and Singapore Telecommunicatio
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PTITF and Singapore is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Indosat Tbk and Singapore Telecommunications L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Telecommunicatio and PT Indosat 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 PT Indosat Tbk are associated (or correlated) with Singapore Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Telecommunicatio has no effect on the direction of PT Indosat i.e., PT Indosat and Singapore Telecommunicatio go up and down completely randomly.
Pair Corralation between PT Indosat and Singapore Telecommunicatio
Assuming the 90 days horizon PT Indosat Tbk is expected to generate 15.1 times more return on investment than Singapore Telecommunicatio. However, PT Indosat is 15.1 times more volatile than Singapore Telecommunications Limited. It trades about 0.18 of its potential returns per unit of risk. Singapore Telecommunications Limited is currently generating about 0.04 per unit of risk. If you would invest 47.00 in PT Indosat Tbk on August 30, 2024 and sell it today you would earn a total of 16.00 from holding PT Indosat Tbk or generate 34.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 68.75% |
| Values | Daily Returns |
PT Indosat Tbk vs. Singapore Telecommunications L
Performance |
| Timeline |
| PT Indosat Tbk |
| Singapore Telecommunicatio |
PT Indosat and Singapore Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Indosat and Singapore Telecommunicatio
The main advantage of trading using opposite PT Indosat and Singapore Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Indosat position performs unexpectedly, Singapore Telecommunicatio 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 Singapore Telecommunicatio will offset losses from the drop in Singapore Telecommunicatio's long position.| PT Indosat vs. Verizon Communications | PT Indosat vs. ATT Inc | PT Indosat vs. Pharvaris BV | PT Indosat vs. Direxion Daily FTSE |
| Singapore Telecommunicatio vs. Airtel Africa Plc | Singapore Telecommunicatio vs. KDDI Corp | Singapore Telecommunicatio vs. Amrica Mvil, SAB | Singapore Telecommunicatio vs. Turk Telekomunikasyon AS |
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 CEOs Directory module to screen CEOs from public companies around the world.
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