Correlation Between Telkom Indonesia and Fund
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Fund 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 Fund 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 Fund Inc, you can compare the effects of market volatilities on Telkom Indonesia and Fund 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 Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Fund.
Diversification Opportunities for Telkom Indonesia and Fund
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telkom and Fund is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Fund Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fund 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 Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fund Inc has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Fund go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Fund
If you would invest 224.00 in Fund Inc on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Fund Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Fund Inc
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Fund Inc |
Telkom Indonesia and Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Fund
The main advantage of trading using opposite Telkom Indonesia and Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Fund 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 Fund will offset losses from the drop in Fund's long position.| Telkom Indonesia vs. Cogent Communications Group | Telkom Indonesia vs. Liberty Broadband Srs | Telkom Indonesia vs. Ribbon Communications | Telkom Indonesia vs. Liberty Broadband Srs |
| Fund vs. Morgan Stanley | Fund vs. Goldman Sachs Group | Fund vs. Charles Schwab Corp | Fund vs. Interactive Brokers Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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