Correlation Between Telkom Indonesia and CHEVRON -
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and CHEVRON - 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 CHEVRON - 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 CHEVRON Dusseldorf, you can compare the effects of market volatilities on Telkom Indonesia and CHEVRON - 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 CHEVRON -. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and CHEVRON -.
Diversification Opportunities for Telkom Indonesia and CHEVRON -
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telkom and CHEVRON is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and CHEVRON Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHEVRON Dusseldorf 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 CHEVRON -. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHEVRON Dusseldorf has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and CHEVRON - go up and down completely randomly.
Pair Corralation between Telkom Indonesia and CHEVRON -
Assuming the 90 days trading horizon Telkom Indonesia Tbk is expected to generate 8.94 times more return on investment than CHEVRON -. However, Telkom Indonesia is 8.94 times more volatile than CHEVRON Dusseldorf. It trades about 0.09 of its potential returns per unit of risk. CHEVRON Dusseldorf is currently generating about 0.28 per unit of risk. If you would invest 15.00 in Telkom Indonesia Tbk on October 16, 2024 and sell it today you would earn a total of 1.00 from holding Telkom Indonesia Tbk or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. CHEVRON Dusseldorf
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| CHEVRON Dusseldorf |
Telkom Indonesia and CHEVRON - Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and CHEVRON -
The main advantage of trading using opposite Telkom Indonesia and CHEVRON - positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, CHEVRON - 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 CHEVRON - will offset losses from the drop in CHEVRON -'s long position.| Telkom Indonesia vs. Performance Food Group | Telkom Indonesia vs. COFCO Joycome Foods | Telkom Indonesia vs. Geely Automobile Holdings | Telkom Indonesia vs. Singapore Telecommunications Limited |
| CHEVRON - vs. Nok Airlines PCL | CHEVRON - vs. CN MODERN DAIRY | CHEVRON - vs. Cal Maine Foods | CHEVRON - vs. MTY Food Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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