Correlation Between Telkom Indonesia and Blueriver Acquisition
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Blueriver Acquisition 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 Blueriver Acquisition 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 Blueriver Acquisition Corp, you can compare the effects of market volatilities on Telkom Indonesia and Blueriver Acquisition 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 Blueriver Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Blueriver Acquisition.
Diversification Opportunities for Telkom Indonesia and Blueriver Acquisition
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Telkom and Blueriver is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Blueriver Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blueriver Acquisition 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 Blueriver Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blueriver Acquisition has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Blueriver Acquisition go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Blueriver Acquisition
Considering the 90-day investment horizon Telkom Indonesia Tbk is expected to under-perform the Blueriver Acquisition. In addition to that, Telkom Indonesia is 4.67 times more volatile than Blueriver Acquisition Corp. It trades about -0.09 of its total potential returns per unit of risk. Blueriver Acquisition Corp is currently generating about -0.01 per unit of volatility. If you would invest 1,065 in Blueriver Acquisition Corp on September 3, 2024 and sell it today you would lose (10.00) from holding Blueriver Acquisition Corp or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 80.97% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Blueriver Acquisition Corp
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Blueriver Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Telkom Indonesia and Blueriver Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Blueriver Acquisition
The main advantage of trading using opposite Telkom Indonesia and Blueriver Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Blueriver Acquisition 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 Blueriver Acquisition will offset losses from the drop in Blueriver Acquisition's long position.| Telkom Indonesia vs. Highway Holdings Limited | Telkom Indonesia vs. QCR Holdings | Telkom Indonesia vs. Partner Communications | Telkom Indonesia vs. Acumen Pharmaceuticals |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |