Correlation Between Telkom Indonesia and Elray Resources
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Elray Resources 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 Elray Resources 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 Elray Resources, you can compare the effects of market volatilities on Telkom Indonesia and Elray Resources 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 Elray Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Elray Resources.
Diversification Opportunities for Telkom Indonesia and Elray Resources
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Telkom and Elray is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Elray Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elray Resources 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 Elray Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elray Resources has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Elray Resources go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Elray Resources
Considering the 90-day investment horizon Telkom Indonesia Tbk is expected to generate 0.21 times more return on investment than Elray Resources. However, Telkom Indonesia Tbk is 4.78 times less risky than Elray Resources. It trades about -0.19 of its potential returns per unit of risk. Elray Resources is currently generating about -0.14 per unit of risk. If you would invest 1,843 in Telkom Indonesia Tbk on August 28, 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 Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Elray Resources
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Elray Resources |
Telkom Indonesia and Elray Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Elray Resources
The main advantage of trading using opposite Telkom Indonesia and Elray Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Elray Resources 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 Elray Resources will offset losses from the drop in Elray Resources' long position.| Telkom Indonesia vs. Liberty Broadband Srs | Telkom Indonesia vs. Ribbon Communications | Telkom Indonesia vs. Liberty Broadband Srs | Telkom Indonesia vs. Shenandoah Telecommunications Co |
| Elray Resources vs. Real Luck Group | Elray Resources vs. Betmakers Technology Group | Elray Resources vs. Jackpot Digital |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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