Correlation Between Telkom Indonesia and Cue Biopharma
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Cue Biopharma 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 Cue Biopharma 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 Cue Biopharma, you can compare the effects of market volatilities on Telkom Indonesia and Cue Biopharma 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 Cue Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Cue Biopharma.
Diversification Opportunities for Telkom Indonesia and Cue Biopharma
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telkom and Cue is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Cue Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cue Biopharma 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 Cue Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cue Biopharma has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Cue Biopharma go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Cue Biopharma
Considering the 90-day investment horizon Telkom Indonesia Tbk is expected to generate 0.24 times more return on investment than Cue Biopharma. However, Telkom Indonesia Tbk is 4.23 times less risky than Cue Biopharma. It trades about -0.17 of its potential returns per unit of risk. Cue Biopharma is currently generating about -0.18 per unit of risk. If you would invest 1,856 in Telkom Indonesia Tbk on August 25, 2024 and sell it today you would lose (148.00) from holding Telkom Indonesia Tbk or give up 7.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Cue Biopharma
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Cue Biopharma |
Telkom Indonesia and Cue Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Cue Biopharma
The main advantage of trading using opposite Telkom Indonesia and Cue Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Cue Biopharma 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 Cue Biopharma will offset losses from the drop in Cue Biopharma's long position.| Telkom Indonesia vs. Consolidated Communications | Telkom Indonesia vs. Cogent Communications Group | Telkom Indonesia vs. Liberty Broadband Srs | Telkom Indonesia vs. Ribbon Communications |
| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem Therapeutics |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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