Correlation Between Telkom Indonesia and Bloise Holding
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Bloise Holding 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 Bloise Holding 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 Bloise Holding AG, you can compare the effects of market volatilities on Telkom Indonesia and Bloise Holding 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 Bloise Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Bloise Holding.
Diversification Opportunities for Telkom Indonesia and Bloise Holding
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Telkom and Bloise is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Bloise Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloise Holding AG 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 Bloise Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloise Holding AG has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Bloise Holding go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Bloise Holding
Considering the 90-day investment horizon Telkom Indonesia Tbk is expected to under-perform the Bloise Holding. In addition to that, Telkom Indonesia is 1.13 times more volatile than Bloise Holding AG. It trades about -0.02 of its total potential returns per unit of risk. Bloise Holding AG is currently generating about 0.11 per unit of volatility. If you would invest 16,493 in Bloise Holding AG on August 24, 2024 and sell it today you would earn a total of 3,625 from holding Bloise Holding AG or generate 21.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Bloise Holding AG
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Bloise Holding AG |
Telkom Indonesia and Bloise Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Bloise Holding
The main advantage of trading using opposite Telkom Indonesia and Bloise Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Bloise Holding 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 Bloise Holding will offset losses from the drop in Bloise Holding's long position.| Telkom Indonesia vs. Small Cap Core | Telkom Indonesia vs. FitLife Brands, Common | Telkom Indonesia vs. Mutual Of America | Telkom Indonesia vs. Gfl Environmental Holdings |
| Bloise Holding vs. Berkshire Hathaway | Bloise Holding vs. American International Group | Bloise Holding vs. Arch Capital Group | Bloise Holding vs. Sun Life Financial |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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