Correlation Between Telkom Indonesia and Realord Group
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Realord Group 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 Telkom Indonesia and Realord Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telkom Indonesia Tbk and Realord Group Holdings, you can compare the effects of market volatilities on Telkom Indonesia and Realord Group 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 Telkom Indonesia with a short position of Realord Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Realord Group.
Diversification Opportunities for Telkom Indonesia and Realord Group
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telkom and Realord is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Realord Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Realord Group Holdings and Telkom Indonesia 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 Telkom Indonesia Tbk are associated (or correlated) with Realord Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Realord Group Holdings has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Realord Group go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Realord Group
Assuming the 90 days trading horizon Telkom Indonesia Tbk is expected to generate 2.34 times more return on investment than Realord Group. However, Telkom Indonesia is 2.34 times more volatile than Realord Group Holdings. It trades about 0.13 of its potential returns per unit of risk. Realord Group Holdings is currently generating about 0.05 per unit of risk. If you would invest 13.00 in Telkom Indonesia Tbk on October 20, 2024 and sell it today you would earn a total of 1.00 from holding Telkom Indonesia Tbk or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Realord Group Holdings
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Realord Group Holdings |
Telkom Indonesia and Realord Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Realord Group
The main advantage of trading using opposite Telkom Indonesia and Realord Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Realord Group 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 Realord Group will offset losses from the drop in Realord Group's long position.| Telkom Indonesia vs. Apple Inc | Telkom Indonesia vs. Apple Inc | Telkom Indonesia vs. Apple Inc | Telkom Indonesia vs. Apple Inc |
| Realord Group vs. INDOFOOD AGRI RES | Realord Group vs. ARDAGH METAL PACDL 0001 | Realord Group vs. FIREWEED METALS P | Realord Group vs. Jacquet Metal Service |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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