Correlation Between Telkom Indonesia and BASE
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and BASE 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 BASE 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 BASE Inc, you can compare the effects of market volatilities on Telkom Indonesia and BASE 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 BASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and BASE.
Diversification Opportunities for Telkom Indonesia and BASE
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telkom and BASE is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and BASE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BASE 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 BASE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BASE Inc has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and BASE go up and down completely randomly.
Pair Corralation between Telkom Indonesia and BASE
Considering the 90-day investment horizon Telkom Indonesia Tbk is expected to generate 1.26 times more return on investment than BASE. However, Telkom Indonesia is 1.26 times more volatile than BASE Inc. It trades about 0.19 of its potential returns per unit of risk. BASE Inc is currently generating about 0.12 per unit of risk. If you would invest 1,553 in Telkom Indonesia Tbk on October 20, 2024 and sell it today you would earn a total of 95.00 from holding Telkom Indonesia Tbk or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. BASE Inc
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| BASE Inc |
Telkom Indonesia and BASE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and BASE
The main advantage of trading using opposite Telkom Indonesia and BASE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, BASE 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 BASE will offset losses from the drop in BASE'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 |
| BASE vs. CurrentC Power | BASE vs. Agent Information Software | BASE vs. Auddia Inc | BASE vs. Maxwell Resource |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |