Correlation Between Telkom Indonesia and Atomera
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Atomera 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 Atomera 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 Atomera, you can compare the effects of market volatilities on Telkom Indonesia and Atomera 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 Atomera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Atomera.
Diversification Opportunities for Telkom Indonesia and Atomera
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telkom and Atomera is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Atomera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomera 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 Atomera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomera has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Atomera go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Atomera
Considering the 90-day investment horizon Telkom Indonesia Tbk is expected to under-perform the Atomera. But the stock apears to be less risky and, when comparing its historical volatility, Telkom Indonesia Tbk is 3.7 times less risky than Atomera. The stock trades about -0.03 of its potential returns per unit of risk. The Atomera is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 776.00 in Atomera on August 24, 2024 and sell it today you would lose (196.00) from holding Atomera or give up 25.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Atomera
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Atomera |
Telkom Indonesia and Atomera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Atomera
The main advantage of trading using opposite Telkom Indonesia and Atomera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Atomera 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 Atomera will offset losses from the drop in Atomera's long position.| Telkom Indonesia vs. Liberty Broadband Srs | Telkom Indonesia vs. Cable One | Telkom Indonesia vs. Liberty Broadband Corp | Telkom Indonesia vs. Liberty Global PLC |
| Atomera vs. Axcelis Technologies | Atomera vs. inTest | Atomera vs. Lam Research Corp | Atomera vs. Photronics |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |