Correlation Between Telkom Indonesia and Curis
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Curis 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 Curis 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 Curis Inc, you can compare the effects of market volatilities on Telkom Indonesia and Curis 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 Curis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Curis.
Diversification Opportunities for Telkom Indonesia and Curis
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Telkom and Curis is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Curis Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curis 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 Curis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curis Inc has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Curis go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Curis
Considering the 90-day investment horizon Telkom Indonesia Tbk is expected to generate 0.54 times more return on investment than Curis. However, Telkom Indonesia Tbk is 1.84 times less risky than Curis. It trades about -0.18 of its potential returns per unit of risk. Curis Inc is currently generating about -0.21 per unit of risk. If you would invest 1,843 in Telkom Indonesia Tbk on August 29, 2024 and sell it today you would lose (159.00) from holding Telkom Indonesia Tbk or give up 8.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Curis Inc
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Curis Inc |
Telkom Indonesia and Curis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Curis
The main advantage of trading using opposite Telkom Indonesia and Curis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Curis 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 Curis will offset losses from the drop in Curis' 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 |
| Curis vs. Aileron Therapeutics | Curis vs. Artelo Biosciences | Curis vs. Histogen | Curis vs. X4 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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