Correlation Between Telkom Indonesia and RTL Group
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By analyzing existing cross correlation between Telkom Indonesia Tbk and RTL Group SA, you can compare the effects of market volatilities on Telkom Indonesia and RTL 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 RTL Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and RTL Group.
Diversification Opportunities for Telkom Indonesia and RTL Group
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Telkom and RTL is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and RTL Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RTL Group SA 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 RTL Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RTL Group SA has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and RTL Group go up and down completely randomly.
Pair Corralation between Telkom Indonesia and RTL Group
Assuming the 90 days trading horizon Telkom Indonesia Tbk is expected to generate 3.66 times more return on investment than RTL Group. However, Telkom Indonesia is 3.66 times more volatile than RTL Group SA. It trades about 0.03 of its potential returns per unit of risk. RTL Group SA is currently generating about -0.11 per unit of risk. If you would invest 17.00 in Telkom Indonesia Tbk on September 1, 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 Together |
| Strength | Significant |
| Accuracy | 99.24% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. RTL Group SA
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| RTL Group SA |
Telkom Indonesia and RTL Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and RTL Group
The main advantage of trading using opposite Telkom Indonesia and RTL Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, RTL 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 RTL Group will offset losses from the drop in RTL Group's long position.| Telkom Indonesia vs. Molson Coors Beverage | Telkom Indonesia vs. HomeToGo SE | Telkom Indonesia vs. MAVEN WIRELESS SWEDEN | Telkom Indonesia vs. Fevertree Drinks PLC |
| RTL Group vs. Performance Food Group | RTL Group vs. Mitsubishi Gas Chemical | RTL Group vs. PREMIER FOODS | RTL Group vs. CHEMICAL INDUSTRIES |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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