Correlation Between Telkom Indonesia and COREBRIDGE FINANCIAL
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL INC, you can compare the effects of market volatilities on Telkom Indonesia and COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and COREBRIDGE FINANCIAL.
Diversification Opportunities for Telkom Indonesia and COREBRIDGE FINANCIAL
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telkom and COREBRIDGE is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and COREBRIDGE FINANCIAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COREBRIDGE FINANCIAL INC 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 COREBRIDGE FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COREBRIDGE FINANCIAL INC has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and COREBRIDGE FINANCIAL go up and down completely randomly.
Pair Corralation between Telkom Indonesia and COREBRIDGE FINANCIAL
Assuming the 90 days trading horizon Telkom Indonesia Tbk is expected to generate 2.88 times more return on investment than COREBRIDGE FINANCIAL. However, Telkom Indonesia is 2.88 times more volatile than COREBRIDGE FINANCIAL INC. It trades about 0.03 of its potential returns per unit of risk. COREBRIDGE FINANCIAL INC is currently generating about 0.06 per unit of risk. If you would invest 15.00 in Telkom Indonesia Tbk on October 13, 2024 and sell it today you would earn a total of 0.00 from holding Telkom Indonesia Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. COREBRIDGE FINANCIAL INC
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| COREBRIDGE FINANCIAL INC |
Telkom Indonesia and COREBRIDGE FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and COREBRIDGE FINANCIAL
The main advantage of trading using opposite Telkom Indonesia and COREBRIDGE FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL will offset losses from the drop in COREBRIDGE FINANCIAL's long position.| Telkom Indonesia vs. The Japan Steel | Telkom Indonesia vs. STEEL DYNAMICS | Telkom Indonesia vs. Tianjin Capital Environmental | Telkom Indonesia vs. Sch Environnement SA |
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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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