Correlation Between Telkom Indonesia and AERWINS Technologies
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and AERWINS Technologies 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 AERWINS Technologies 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 AERWINS Technologies, you can compare the effects of market volatilities on Telkom Indonesia and AERWINS Technologies 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 AERWINS Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and AERWINS Technologies.
Diversification Opportunities for Telkom Indonesia and AERWINS Technologies
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telkom and AERWINS is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and AERWINS Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AERWINS Technologies 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 AERWINS Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AERWINS Technologies has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and AERWINS Technologies go up and down completely randomly.
Pair Corralation between Telkom Indonesia and AERWINS Technologies
If you would invest 0.58 in AERWINS Technologies on August 31, 2024 and sell it today you would earn a total of 0.00 from holding AERWINS Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. AERWINS Technologies
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| AERWINS Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Telkom Indonesia and AERWINS Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and AERWINS Technologies
The main advantage of trading using opposite Telkom Indonesia and AERWINS Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, AERWINS Technologies 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 AERWINS Technologies will offset losses from the drop in AERWINS Technologies' long position.| Telkom Indonesia vs. RLJ Lodging Trust | Telkom Indonesia vs. Aquagold International | Telkom Indonesia vs. Stepstone Group | Telkom Indonesia vs. Morningstar Unconstrained Allocation |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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