Correlation Between Telkom Indonesia and Grom Social
Can any of the company-specific risk be diversified away by investing in both Telkom Indonesia and Grom Social 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 Grom Social 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 Grom Social Enterprises, you can compare the effects of market volatilities on Telkom Indonesia and Grom Social 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 Grom Social. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telkom Indonesia and Grom Social.
Diversification Opportunities for Telkom Indonesia and Grom Social
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telkom and Grom is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Telkom Indonesia Tbk and Grom Social Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grom Social Enterprises 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 Grom Social. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grom Social Enterprises has no effect on the direction of Telkom Indonesia i.e., Telkom Indonesia and Grom Social go up and down completely randomly.
Pair Corralation between Telkom Indonesia and Grom Social
If you would invest 1.00 in Grom Social Enterprises on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Grom Social Enterprises or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.67% |
| Values | Daily Returns |
Telkom Indonesia Tbk vs. Grom Social Enterprises
Performance |
| Timeline |
| Telkom Indonesia Tbk |
| Grom Social Enterprises |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Telkom Indonesia and Grom Social Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telkom Indonesia and Grom Social
The main advantage of trading using opposite Telkom Indonesia and Grom Social positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telkom Indonesia position performs unexpectedly, Grom Social 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 Grom Social will offset losses from the drop in Grom Social's 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 |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |