Correlation Between Telkom Indonesia and WHIRLPOOL
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and WHIRLPOOL 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 WHIRLPOOL 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 WHIRLPOOL, you can compare the effects of market volatilities on Telkom Indonesia and WHIRLPOOL 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 WHIRLPOOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and WHIRLPOOL.
Diversification Opportunities for Telkom Indonesia and WHIRLPOOL
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telkom and WHIRLPOOL is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and WHIRLPOOL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHIRLPOOL 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 WHIRLPOOL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHIRLPOOL has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and WHIRLPOOL go up and down completely randomly.
Pair Corralation between Telkom Indonesia and WHIRLPOOL
Assuming the 90 days trading horizon Telkom Indonesia Tbk is expected to under-perform the WHIRLPOOL. In addition to that, Telkom Indonesia is 2.89 times more volatile than WHIRLPOOL. It trades about -0.02 of its total potential returns per unit of risk. WHIRLPOOL is currently generating about 0.25 per unit of volatility. If you would invest 9,510 in WHIRLPOOL on September 4, 2024 and sell it today you would earn a total of 1,080 from holding WHIRLPOOL or generate 11.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. WHIRLPOOL
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| WHIRLPOOL |
Telkom Indonesia and WHIRLPOOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and WHIRLPOOL
The main advantage of trading using opposite Telkom Indonesia and WHIRLPOOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, WHIRLPOOL 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 WHIRLPOOL will offset losses from the drop in WHIRLPOOL'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 |
| WHIRLPOOL vs. KAUFMAN ET BROAD | WHIRLPOOL vs. Gold Road Resources | WHIRLPOOL vs. KENNAMETAL INC | WHIRLPOOL vs. GALENA MINING LTD |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |