Correlation Between Telkom Indonesia and Cetus Capital
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Cetus Capital 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 Cetus Capital 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 Cetus Capital Acquisition, you can compare the effects of market volatilities on Telkom Indonesia and Cetus Capital 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 Cetus Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Cetus Capital.
Diversification Opportunities for Telkom Indonesia and Cetus Capital
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Telkom and Cetus is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Cetus Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cetus Capital 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 Cetus Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cetus Capital Acquisition has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Cetus Capital go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Cetus Capital
If you would invest 1,141 in Cetus Capital Acquisition on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Cetus Capital Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Cetus Capital Acquisition
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Cetus Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Telkom Indonesia and Cetus Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Cetus Capital
The main advantage of trading using opposite Telkom Indonesia and Cetus Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Cetus Capital 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 Cetus Capital will offset losses from the drop in Cetus Capital's long position.| Telkom Indonesia vs. T Mobile | Telkom Indonesia vs. Comcast Corp | Telkom Indonesia vs. Lumen Technologies | Telkom Indonesia vs. Charter Communications |
| Cetus Capital vs. Pintec Technology Holdings | Cetus Capital vs. Chiba Bank Ltd | Cetus Capital vs. KeyCorp | Cetus Capital vs. Commonwealth Bank of |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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