Correlation Between Telkom Indonesia and Global Gaming
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Global Gaming 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 Global Gaming 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 Global Gaming Technologies, you can compare the effects of market volatilities on Telkom Indonesia and Global Gaming 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 Global Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Global Gaming.
Diversification Opportunities for Telkom Indonesia and Global Gaming
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telkom and Global is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Global Gaming Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Gaming Techno 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 Global Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Gaming Techno has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Global Gaming go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Global Gaming
If you would invest 0.01 in Global Gaming Technologies on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Global Gaming Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Global Gaming Technologies
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Global Gaming Techno |
Telkom Indonesia and Global Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Global Gaming
The main advantage of trading using opposite Telkom Indonesia and Global Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Global Gaming 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 Global Gaming will offset losses from the drop in Global Gaming'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 |
| Global Gaming vs. Electronic Arts | Global Gaming vs. Nintendo Co ADR | Global Gaming vs. Roblox Corp | Global Gaming vs. NetEase |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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