Correlation Between Telkom Indonesia and DaVita
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and DaVita 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 DaVita 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 DaVita Inc, you can compare the effects of market volatilities on Telkom Indonesia and DaVita 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 DaVita. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and DaVita.
Diversification Opportunities for Telkom Indonesia and DaVita
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telkom and DaVita is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and DaVita Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DaVita 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 DaVita. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DaVita Inc has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and DaVita go up and down completely randomly.
Pair Corralation between Telkom Indonesia and DaVita
Assuming the 90 days trading horizon Telkom Indonesia Tbk is expected to under-perform the DaVita. In addition to that, Telkom Indonesia is 3.51 times more volatile than DaVita Inc. It trades about -0.01 of its total potential returns per unit of risk. DaVita Inc is currently generating about 0.05 per unit of volatility. If you would invest 14,655 in DaVita Inc on September 12, 2024 and sell it today you would earn a total of 240.00 from holding DaVita Inc or generate 1.64% 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. DaVita Inc
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| DaVita Inc |
Telkom Indonesia and DaVita Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and DaVita
The main advantage of trading using opposite Telkom Indonesia and DaVita positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, DaVita 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 DaVita will offset losses from the drop in DaVita's long position.| Telkom Indonesia vs. Singapore Telecommunications Limited | Telkom Indonesia vs. Ribbon Communications | Telkom Indonesia vs. Tower Semiconductor | Telkom Indonesia vs. Spirent Communications plc |
| DaVita vs. Ramsay Health Care | DaVita vs. Universal Health Services | DaVita vs. Superior Plus Corp | DaVita vs. SIVERS SEMICONDUCTORS AB |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |