Correlation Between Telkom Indonesia and WINMARK
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and WINMARK 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 WINMARK 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 WINMARK, you can compare the effects of market volatilities on Telkom Indonesia and WINMARK 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 WINMARK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and WINMARK.
Diversification Opportunities for Telkom Indonesia and WINMARK
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Telkom and WINMARK is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and WINMARK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WINMARK 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 WINMARK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WINMARK has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and WINMARK go up and down completely randomly.
Pair Corralation between Telkom Indonesia and WINMARK
Assuming the 90 days trading horizon Telkom Indonesia Tbk is expected to generate 2.97 times more return on investment than WINMARK. However, Telkom Indonesia is 2.97 times more volatile than WINMARK. It trades about 0.0 of its potential returns per unit of risk. WINMARK is currently generating about 0.0 per unit of risk. If you would invest 22.00 in Telkom Indonesia Tbk on September 4, 2024 and sell it today you would lose (7.00) from holding Telkom Indonesia Tbk or give up 31.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. WINMARK
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| WINMARK |
Telkom Indonesia and WINMARK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and WINMARK
The main advantage of trading using opposite Telkom Indonesia and WINMARK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, WINMARK 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 WINMARK will offset losses from the drop in WINMARK's long position.| Telkom Indonesia vs. G III Apparel Group | Telkom Indonesia vs. KIMBALL ELECTRONICS | Telkom Indonesia vs. Methode Electronics | Telkom Indonesia vs. Benchmark Electronics |
| WINMARK vs. SALESFORCE INC CDR | WINMARK vs. AOI Electronics Co | WINMARK vs. STORE ELECTRONIC | WINMARK vs. GungHo Online Entertainment |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |