Correlation Between Telkom Indonesia and Edify Acquisition
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Edify 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 Edify 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 Edify Acquisition Corp, you can compare the effects of market volatilities on Telkom Indonesia and Edify 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 Edify Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Edify Acquisition.
Diversification Opportunities for Telkom Indonesia and Edify Acquisition
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telkom and Edify is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Edify Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edify Acquisition Corp 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 Edify Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edify Acquisition Corp has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Edify Acquisition go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Edify Acquisition
If you would invest 2.14 in Edify Acquisition Corp on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Edify Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Edify Acquisition Corp
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Edify Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Telkom Indonesia and Edify Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Edify Acquisition
The main advantage of trading using opposite Telkom Indonesia and Edify Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Edify 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 Edify Acquisition will offset losses from the drop in Edify Acquisition's long position.| Telkom Indonesia vs. T Mobile | Telkom Indonesia vs. Comcast Corp | Telkom Indonesia vs. Verizon Communications | Telkom Indonesia vs. Charter Communications |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |